The Short-Run Phillips Curve Is Built on the Assumption That

question 18

Multiple Choice

The short-run Phillips curve is built on the assumption that

• A) prices are completely flexible.
• B) inflation expectations never adjust.
• C) the unemployment rate and inflation rate are not related.
• D) inflation expectations adjust over time.
• E) the natural rate of unemployment does not exist.

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Definitions:

Nurture

The process of caring for and encouraging the growth or development of someone or something.

Identical Human Twins

Twins who develop from a single fertilized egg that splits and forms two embryos, sharing the same genetic material.

Heterozygous

A genetic condition where an organism has two different alleles of a gene, one inherited from each parent.

Huntington Disease

A genetic disorder that causes the progressive breakdown of nerve cells in the brain, leading to physical and mental deterioration.