The Idea That,in the Long Run,the Phillips Curve Is Vertical,implying

question 49

Multiple Choice

The idea that,in the long run,the Phillips curve is vertical,implying no trade-off between inflation and unemployment,is based on the premise that

• A)inflation and unemployment are unrelated.
• B)expectations do not adjust to reflect actual inflation.
• C)changes in unemployment do not influence real GDP.
• D)inflationary expectations fully adjust to actual inflation.
• E)inflationary expectations do not influence inflation.

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Definitions:

Rights Offering

A method by which a company raises capital through issuing new shares to existing shareholders at a predetermined price for a fixed period.

Ownership Percentage

Ownership percentage refers to the fraction or percentage of a company that is owned by a particular shareholder or group of shareholders.

Indirect Cost

Costs that are not directly attributable to a specific product, activity, or project, but are necessary for the general operation of the business.

IPO

Stands for Initial Public Offering, which is the process where a private company goes public by selling its shares to the general public for the first time.