One Implication of the Long-Run Phillips Curve Is That

question 248

Multiple Choice

One implication of the long-run Phillips curve is that

• A) economic policies to keep the unemployment rate below its natural rate will lead to accelerating inflation.
• B) in the long run, the government can accurately estimate the natural rate of unemployment.
• C) in the long run, the curve becomes upward sloping.
• D) the natural rate of unemployment must be lowered to zero.

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Definitions:

Need for Achievement

A psychological drive in individuals to accomplish tasks, achieve excellence, and reach high standards of performance.

Need for Power

is a psychological term referring to an individual's desire to control or influence others.

Need for Affiliation

A person's inherent desire to feel connected or involved with social groups or relationships.

Constructively Criticize

The act of offering valid and well-reasoned opinions about the work of others, usually involving both positive and negative comments, in a friendly manner rather than an oppositional one.