The Long- Run Phillips Curve Shows That in the Long

question 5

Multiple Choice

The long- run Phillips curve shows that in the long run, policymakers can

• A) lower unemployment if they are willing to accept more inflation forever.
• B) lower inflation if they are willing to accept higher unemployment forever.
• C) lower inflation without increasing unemployment.
• D) choose the unemployment rate but not the inflation rate.

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Definitions:

Autonomic Nervous System

The part of the nervous system responsible for controlling involuntary bodily functions, including heart rate, digestion, and respiratory rate.

Sympathetic Nervous System

Part of the autonomic nervous system responsible for the body's 'fight or flight' response to stress or danger.

Bodily Arousal

A physiological response to stimuli, characterized by an increase in energy, alertness, and readiness for action.

Deliberate Action

An intentional, conscious behavior directed towards achieving a specific goal.