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:

Donee Beneficiary

A third-party beneficiary for whom a contract is intentionally made to benefit as a gift.

Constructive Breach

A type of breach of contract where one party indirectly fails to perform their obligations, thereby allowing the other party to treat the contract as broken.

Contractual Obligations

Duties that are legally binding and arise from agreements or contracts between two or more parties.

Abandonment

The act of voluntarily giving up a right, claim, or property without transferring it to another person and with no intention of reclaiming it.