The Long- Run Phillips Curve Shows That in the Long

question 145

Multiple Choice

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

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

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Definitions:

Vibrant Imagination

Refers to a vivid and creative thought process that enables individuals to generate innovative ideas and solutions.

Openness to Experience

A personality trait characterized by a willingness to try new things, be creative, and think in abstract ways.

Flexible Thinking

The ability to adapt and adjust one's thinking or strategies in response to new information, changing conditions, or unexpected obstacles.

Agreeableness

A personality trait characterized by compassion, cooperation, and a desire to maintain positive social relations.