The Expectations-Augmented Phillips Curve Suggests, Among Other Things, That

question 78

Multiple Choice

The expectations-augmented Phillips curve suggests, among other things, that

• A) an economy that perpetually runs actual GDP near potential GDP will enjoy stable and predictable rates of inflation in the absence of any outside shocks.
• B) an economy that perpetually runs actual GDP in excess of potential GDP will suffer year after year of successively higher inflation.
• C) an economy that is not willing to suffer recession will have to live with inflation unless it can lower inflationary expectations somehow.
• D) all of the above.
• E) none of the above.

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Definitions:

Digital Rectal Examination

A physical examination method where a healthcare provider inserts a lubricated, gloved finger into the rectum to check for abnormalities of the prostate or other structures.

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A protein that may be found in high amounts in the blood of patients with certain types of cancer, especially ovarian cancer, used as a biomarker.

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Incorrectly shaped or deformed bone that has broken or cracked.

Palpation

The examination of the body using the sense of touch, often used in medical contexts.