The Short-Run Phillips Curve Shows Only a Short-Run Tradeoff Between

question 15

Multiple Choice

The short-run Phillips curve shows only a short-run tradeoff between the unemployment rate and the inflation rate because in the long run the

• A)expected inflation rate increases.
• B)natural unemployment rate increases.
• C)inflation rate returns to the natural inflation rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
• D)unemployment rate returns to the natural unemployment rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
• E)inflation rate returns to the natural inflation rate and the unemployment rate returns to the natural unemployment rate.

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Definitions:

Psychosocial Development

A theory that describes the stages of psychological and social development that humans go through from infancy to adulthood.

Self-confidence

The belief in one's own abilities or competence.

Basic Characteristic

A fundamental or inherent attribute that defines or distinguishes an entity, concept, or thing.

Psychosocial Development

A theory that divides human growth and development into eight stages, each involving psychological and social conflicts that individuals must resolve to develop essential virtues.