In the Keynesian View

question 16

Multiple Choice

In the Keynesian view,

• A)the short-run Phillips curve is unstable and money demand is stable
• B)The short-run Phillips curve is vertical but the long-run Phillips curve is downward sloping.
• C)the short-run Phillips curve is unstable and money demand is stable.
• D)both the short-run and long-run Phillips curves are vertical.
• E)none of the above.

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Definitions:

Regression Equation

An equation employed to forecast a dependent variable by using one or more independent variables.

Y-Intercept

The location on a graph where a line intersects with the Y-axis.

Null Hypothesis

A hypothesis in statistical analysis that proposes no significant difference or effect, used as a starting point for hypothesis testing.

Household Income

The combined gross income of all members of a household who are 15 years old and older, whether they are related or not.