The Vertical Long-Run Phillips Curve Occurs in the Long Run

question 65

Multiple Choice

The vertical long-run Phillips curve occurs in the long run because

• A) the aggregate supply curve is vertical which means that changes in aggregate demand will not change unemployment.
• B) wage and price rigidities prevent changes in aggregate demand to change unemployment.
• C) economic agents are quick to respond to changes in the price level.
• D) of lags in monetary and fiscal policies.

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Definitions:

Work Sampling

Work Sampling is a technique used to analyze the work performed in a specific job or organization by taking random samples of the activities performed over a period, to determine how time is distributed across different tasks.

Observers

Individuals or entities that watch or monitor events, behaviors, or processes, often for the purpose of drawing conclusions or gathering information.

Graded

Evaluated or classified according to a scale or standard.

Reliability

The quality of being dependable and consistent in performance or results.