A Long-Run Phillips Curve Has A(n) _____ Slope Because _____

question 65

Multiple Choice

A long-run Phillips curve has a(n) _____ slope because _____.

• A) negative; there is a positive relationship between the output gap and the nonaccelerating inflation rate of unemployment (NAIRU)
• B) infinite; any unemployment rate below the NAIRU leads to ever-accelerating inflation
• C) zero; there is a positive relationship between expected inflation and unemployment
• D) positive; any unemployment rate above the NAIRU leads to ever-accelerating inflation

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Definitions:

Perceptions

The process of organizing and interpreting sensory information to understand and interact with the environment.

Perceptions

Perceptions are the ways in which individuals interpret and understand their environment and experiences, influenced by their own beliefs, thoughts, and feelings.

Prototypes

Early samples, models, or releases of a product built to test a concept or process or to act as a thing to be replicated or learned from.

Social Category

A classification of people based on shared characteristics or attributes, such as race, gender, or socioeconomic status, which can influence identity and perceptions.