The Long-Run Phillips Curve Shows the Relationship Between

question 197

Multiple Choice

The long-run Phillips curve shows the relationship between

• A) the price level and real GDP in the long run.
• B) the price level and unemployment in the long run.
• C) inflation and unemployment when expected inflation equals the actual inflation.
• D) inflation and unemployment when expected inflation does not change.

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.