Only the Short-Run Phillips Curve Is Downward Sloping Because

question 9

Multiple Choice

Only the short-run Phillips curve is downward sloping because

• A) in the long run,prices adjust,eliminating the relationship between inflation and unemployment.
• B) in the long run,prices are sticky,eliminating the relationship between inflation and unemployment.
• C) central banks have no influence over the economy in the short run.
• D) central banks only have influence over the economy in the long run.
• E) long-run effects of monetary policy are negated by fiscal policy.

---

Definitions:

Four-drive Theory

A motivational theory proposing that human beings are driven by the desires to acquire, bond, learn, and defend.

Esteem

Relates to the self-respect, self-worth, or regard that an individual has for themselves; can also refer to the admiration one receives from others.

Four-drive Theory

A motivational theory positing that human behavior is driven by four basic needs: the drive to acquire, bond, comprehend, and defend.

Rewards

Rewards are benefits or recognition given to individuals or groups for their performance and achievements.