The Vertical Long-Run Phillips Curve Occurs in the Long Run

question 65

Multiple Choice

The vertical long-run Phillips curve occurs in the long run because

• A) the aggregate supply curve is vertical which means that changes in aggregate demand will not change unemployment.
• B) wage and price rigidities prevent changes in aggregate demand to change unemployment.
• C) economic agents are quick to respond to changes in the price level.
• D) of lags in monetary and fiscal policies.

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Definitions:

Job Evaluations

A systematic process to determine the relative worth of jobs within an organization, often used to establish fair compensation.

Superior

Refers to something that is above average in quality or performance; often used to describe a higher rank or excellence.

Inferior

Describing something of lower quality, value, or importance in comparison to another.

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.