The Idea That the Long-Run Phillips Curve Is

question 118

Multiple Choice

The idea that the long-run Phillips curve is

• A)vertical stems from the analysis of Samuelson and Solow.
• B)vertical stems from the analysis of Friedman and Phelps.
• C)vertical was disproved by the experiment that monetary and fiscal policymakers inadvertently created in the 1970s.
• D)downward-sloping can be correct if unemployment responds very quickly to unexpected inflation.

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Definitions:

Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments and abilities is greater than their objective accuracy.

Algorithms

Step-by-step procedures or formulas for solving a problem or accomplishing a specific task, often used in computing and mathematics.

Confirmation Bias

The tendency to search for, interpret, and remember information in a way that confirms one's preconceptions, leading to statistical errors.

Probability Distribution

An equation or model that describes the likelihood of various outcomes in a stochastic process.