The Long-Run Phillips Curve

question 190

Multiple Choice

The long-run Phillips curve

• A) is downward sloping, indicating a tradeoff between unemployment and inflation.
• B) shifts to the right when the expected inflation rate increases.
• C) shows no tradeoff between inflation and unemployment; that is, any inflation rate in the long run can be consistent with the natural rate of unemployment.
• D) is upward sloping, showing that higher rates of unemployment are associated with higher rates of inflation.

Identify the impact of product differentiation on monopolistic competition.

Recognize the role of advertising in monopolistic competition and its effects on consumer perceptions and market outcomes.

Analyze the efficiency implications of monopolistic competition relative to perfect competition.

Comprehend the reasons behind and consequences of excess capacity in monopolistic competition.

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Definitions:

Cohesiveness

The extent to which members of a group or team are mutually attracted and motivated to stay together and achieve common goals.

Storming Stage

The second phase in group development, characterized by conflict and competition as team members start to express their individual personalities and resist the group's influence.

Infighting

Internal conflict or rivalry among members within the same organization or group, leading to reduced cohesion and effectiveness.

Coalitions

Alliances between distinct parties, organizations, or countries for a common purpose, often temporary.