The Long-Run Phillips Curve Shows the Relationship Between

question 86

Multiple Choice

The long-run Phillips curve shows the relationship between:

• A) potential aggregate output and the natural rate of unemployment at a given rate of expected inflation.
• B) expected inflation and actual inflation after the expectation becomes embedded in people's minds.
• C) the aggregate output and the aggregate price level at a given rate of expected inflation.
• D) unemployment and inflation after expectations of inflation have had time to adjust to experience.

---

Definitions:

Modification of Perceptions

The process of changing how one interprets or views situations, events, or stimuli, often to reduce stress or negative emotions.

Cognitive Modeling

A method in cognitive therapy where the therapist demonstrates a healthier way of thinking in order to teach the client.

Self-instructional Training

A cognitive-behavioral technique where individuals are taught to direct their own actions through verbal or internal statements, enhancing problem-solving skills.

Self-instructional Training

A cognitive technique aimed at teaching individuals to direct their own behavior through a process of self-talk and internal guidance.