Which of the Following Statements Would Be True If the Short-Run

question 133

Multiple Choice

Which of the following statements would be true if the short-run Phillips curve relationship held in the long run?

• A) A central bank has no control over unemployment.
• B) Only monetary policy,not fiscal policy,has any real effects on the economy.
• C) Prices fully adjust in the long run.
• D) A central bank can always steer an economy out of recession,simply through creating inflation.
• E) Expansionary monetary policy can decrease inflation at the expense of unemployment.

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Definitions:

Methanol

The simplest alcohol, with the formula CH3OH, used as a solvent, antifreeze, fuel, and as a precursor to other chemicals.

C-O Bond

The covalent bond formed between a carbon and an oxygen atom, a fundamental bond in organic chemistry.

Molecular Dipole Moment

A measure of the separation of positive and negative electrical charges within a molecule, affecting its polarity and interactions with other molecules.

Chloroform

Chloroform is a colorless, sweet-smelling organic compound that has been used as a solvent and an anesthetic in the past, now recognized for its environmental and health implications.