The Lack of a Long-Run Tradeoff Between the Unemployment Rate

question 16

Multiple Choice

The lack of a long-run tradeoff between the unemployment rate and the inflation rate means the long-run Phillips curve is

• A)downward sloping.
• B)horizontal.
• C)vertical.
• D)upward sloping.
• E)U-shaped, with higher inflation initially decreasing unemployment and then increasing it back to the natural unemployment rate.

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Definitions:

PERT Activity

A task or event within the Program Evaluation and Review Technique, a project management tool used to schedule, organize, and coordinate tasks within a project.

Critical Path

The sequence of stages determining the minimum time needed to complete a project, where any delay in the stages causes a delay in the project.

Organizational Responses

The actions or reactions of an organization to internal or external stimuli such as changes in the market, new regulations, or employee feedback.

Narrow Product Lines

Refers to a business strategy focusing on a limited selection of products or services, allowing for specialization and potentially higher proficiency or quality.