Which of the Following Statements Would Be True If the Short-Run

question 133

Multiple Choice

Which of the following statements would be true if the short-run Phillips curve relationship held in the long run?

• A) A central bank has no control over unemployment.
• B) Only monetary policy,not fiscal policy,has any real effects on the economy.
• C) Prices fully adjust in the long run.
• D) A central bank can always steer an economy out of recession,simply through creating inflation.
• E) Expansionary monetary policy can decrease inflation at the expense of unemployment.

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Definitions:

Air Suspension

Air suspension is a type of vehicle suspension powered by an electric or engine-driven air pump or compressor, which inflates flexible bellows to adjust the car's level, reduce the effect of shock forces, and improve ride quality.

Regulated Pressure

The control or maintenance of pressure levels within specific limits in a system, achieved through the use of valves, regulators, or other controlling devices.

Axle Saddle

is a part of a vehicle's chassis that supports the axle, allowing it to bear the weight of the vehicle as well as enabling smooth movement and load distribution across the axle.

Multi-leaf Spring Pack

A suspension component consisting of several layers of metal springs stacked together to absorb impact.