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:

Conjunctive Stimuli

A combination of stimuli that are presented together and the response is conditioned to their combination rather than to any individual component.

Priming

A technique in psychology used to train people's memory in both positive and negative ways, influencing their responses and perceptions.

Visual Presentations

The display of information in a visual format, such as graphs, charts, diagrams, videos, or slides, aimed at enhancing understanding, engagement, and retention of information.

Stimuli

External agents, forces, or mechanisms that can cause a response in a biological organism.