If the Long-Run Aggregate Supply Curve Is Vertical

question 195

Multiple Choice

If the long-run aggregate supply curve is vertical

• A)the economy stays at the natural rate of inflation in the long run.
• B)the short-run Phillips curve must be vertical.
• C)unemployment and inflation are positively related in the long run.
• D)the trade-off between unemployment and inflation cannot be permanent.

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Definitions:

Gourmet Foods

High-quality or exotic ingredients and prepared foods that are often more costly and sought after for their unique flavors and presentation.

Merchandisers

Merchandisers are businesses or individuals that purchase goods for the purpose of selling them to consumers at a profit.

Year-End Adjustments

Year-end adjustments are accounting entries made at the end of an accounting period to update accounts for accurate financial reporting.

Convertible to Cash

Assets that can be quickly and easily transformed into cash without losing significant value.