If Actual Inflation Is Correctly Expected and Built into People's

question 58

Multiple Choice

If actual inflation is correctly expected and built into people's wage and price-setting decisions, the Phillips curve:

• A)becomes a horizontal line.
• B)becomes a vertical line.
• C)remains a downward sloping line.
• D)becomes an upward sloping line.

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Definitions:

Base

Substance that accepts hydrogen ions in water.

Buffer

Set of chemicals that can keep the pH of a solution stable by alternately donating and accepting ions that contribute to pH.

Solute

A substance dissolved in another substance, typically the component of a solution present in the lesser amount.

Double Covalent

A type of chemical bond where two pairs of electrons are shared between atoms, forming a stable molecule.