One Implication of the Phillips Curve When It Is Unable

question 257

Multiple Choice

One implication of the Phillips curve when it is unable to shift in the short run is that

• A) fiscal and monetary policies have no impact on the economy.
• B) the economy is in a liquidity trap.
• C) policymakers face a tradeoff between low unemployment and low inflation.
• D) fiscal policy is more effective than monetary policy.

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Definitions:

Temporal Summation

Addition of one graded potential to another that occur close in time.

Spatial Summation

Spatial summation refers to the process where multiple synaptic inputs, predominantly from separate neurons, combine within a single neuron, potentially leading to an action potential if threshold is reached.

IPSPs

Short for Inhibitory Postsynaptic Potentials, these are electrical changes in the postsynaptic neuron that make it less likely to generate an action potential, thereby inhibiting the neuron.

Potassium Channels

Protein channels in cell membranes that allow potassium ions to pass in and out of the cell, playing key roles in cell signaling and electrical conductivity.