Along the Long- Run Phillips Curve

question 159

Multiple Choice

Along the long- run Phillips curve,

• A)actual inflation is greater than expected inflation.
• B)actual inflation is less than expected inflation.
• C)actual inflation is equal to expected inflation.
• D)None of the above answers is correct.

---

Definitions:

Federal Reserve System

The central bank of the United States, responsible for monetary policy, financial regulation, and stability of the financial system.

Great Depression

A severe worldwide economic downturn that lasted throughout the 1930s, marked by widespread unemployment, deflation, and a significant decline in economic output.

National Banks

National banks are financial institutions chartered by the federal government of a country, authorized to provide a variety of banking services, including accepting deposits, making loans, and issuing currency.

Interest-rate Ceilings

Regulatory limits placed on the maximum interest rates that can be charged on loans, intended to protect borrowers.