The Theory Behind the Short-Run Phillips Curve Relationship Is That

question 99

Multiple Choice

The theory behind the short-run Phillips curve relationship is that

• A) people's expectations of future inflation are based on their most recent experiences.
• B) people form expectations on the basis of all available information.
• C) monetary policy has no real effects in the long run.
• D) monetary expansion stimulates the economy,and this outcome reduces the unemployment rate.
• E) prices are flexible in the long run,causing no relationship between unemployment and inflation.

---

Definitions:

Social Identity

An individual’s sense of who they are, based on their group membership(s), such as nationality, ethnicity, or religion.

Hybrid Identity

A concept that refers to an individual's integration of their native cultural identity with the elements of another culture, often resulting from migration, globalization, or diaspora.

Ascribed Identity

An identity that is assigned to an individual at birth based on societal norms and expectations, such as race, ethnicity, and gender.

Equity

The principle of fairness and justice in the way people are treated, focusing on providing the resources and opportunities needed to achieve equal outcomes.