The Analysis of the Short-Run and Long-Run Phillips Curve Suggests

question 97

Multiple Choice

The analysis of the short-run and long-run Phillips Curve suggests that an increase in aggregate demand

• A)influences real output and employment in the long run, but not in the short run.
• B)influences real output and employment in the short run, but not in the long run.
• C)does not influence the price level in the short run or the long run but only real output and employment.
• D)does not influence real output and employment in the short run or the long run but only the price level.

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Definitions:

Long-Term Memory

A type of memory capable of storing information for long periods, even a lifetime, involving facts, experiences, and skills.

Past Assumptions

Previous beliefs or ideas assumed to be true without concrete evidence.

Repression

A defense mechanism in psychoanalytic theory in which unpleasant thoughts, memories, or feelings are pushed out of the conscious mind.

Repression

A defense mechanism in which unpleasant thoughts, feelings, or desires are excluded from conscious awareness.