The Newer View of the Phillips Curve Implies That

question 38

Multiple Choice

The newer view of the Phillips curve implies that

• A)the natural rate of unemployment can be reduced by expansionary monetary policy
• B)in the long run unemployment does not move towards a natural rate if there is frictional unemployment
• C)an increase in monetary growth affects unemployment and inflation in the short run, but only affects inflation in the long run
• D)there is a clear inverse relationship between unemployment and output
• E)stagflation can best be addressed by implementing expansionary fiscal policies

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Definitions:

Paralysis

The loss of the ability to move and sometimes to feel anything in part or most of the body, typically as a result of illness, poison, or injury.

Brain Death

A medical condition where all functions of the brain cease permanently, indicating the end of life.

Medical Professionals

Individuals with specialized training and certification to provide healthcare services, such as doctors, nurses, and pharmacists.

Suspension of Breathing

The temporary cessation or interruption of breathing, known medically as apnea.