The Long-Run Phillips Curve Is ________ and Equal to ________

question 39

Multiple Choice

The long-run Phillips curve is ________ and equal to ________.

• A) horizontal; the natural rate of unemployment
• B) vertical; the natural rate of unemployment
• C) vertical; full-employment output
• D) horizontal; full-employment inflation
• E) horizontal; full-employment output

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Definitions:

Alternatives Being Considered

The different options or strategies under evaluation to address a particular issue or to achieve a specific goal.

Opportunity Cost

The cost of choosing one option over another, representing the value of the foregone alternative.

Five-Day Workweek

The standard work schedule that involves working five days per week, typically Monday through Friday, with two days off.

Variable Manufacturing Costs

Variable manufacturing costs are expenses that change in proportion with the level of production output, such as raw materials and labor.