One Implication of the Phillips Curve Analysis Is That

question 101

Multiple Choice

One implication of the Phillips curve analysis is that:

• A)unemployment rates below the natural rate are only possible in the long run.
• B)unemployment rates below the natural rate lead to falling rates of inflation in the long run.
• C)if inflationary expectations are accurate,the economy is on the short-run Phillips curve but not on the long-run Phillips curve.
• D)unemployment rates below the natural rate may be achieved only with rising inflation rates.
• E)the natural rate of unemployment is strictly a short-run phenomenon.

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Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Whining

A high-pitched, often repetitive sound made typically as an expression of distress or dissatisfaction.

Desired Items

are objects or outcomes that a person or entity aims to acquire or achieve due to their perceived value or attractiveness.

Reinforcing Behavior

A process in operant conditioning that increases the likelihood of a behavior by administering a reward or withdrawing a negative outcome after the desired behavior is exhibited.