The Long-Run Phillips Curve Shows That in the Long Run

question 303

Multiple Choice

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

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

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Definitions:

Organelles

Specialized structures within a cell that perform specific functions necessary for the cell's life.

Axon

A type of nerve fiber that is typically long and branches far from the cell body. Its function is to send information away from the cell body.

Cervical enlargement

describes the widened area of the spinal cord in the neck region that contains nerves that supply the arms.

Viscous liquid

A thick and sticky fluid that has a high resistance to flow compared to a less viscous liquid.