Which of the Following Is Correct Concerning the Long-Run Phillips

question 97

Multiple Choice

Which of the following is correct concerning the long-run Phillips curve?

• A)Its position is determined primarily by monetary factors.
• B)If it shifts right,long-run aggregate supply shifts right.
• C)It cannot be changed by any government policy.
• D)Its position depends on the natural rate of unemployment.

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Definitions:

Mutually Exclusive Projects

Investment opportunities where the acceptance of one project requires the rejection of another.

Cost of Capital

The desired return a corporation aims for in its investment activities to retain its market capitalization and lure in investments.

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of investments, indicating the annualized effective compounded return rate.

NPV

Net Present Value, a calculation to determine the value of a projected investment by subtracting the present value of cash outflows from the present value of cash inflows.