The Lack of a Long-Run Tradeoff Between the Unemployment Rate

question 25

Multiple Choice

The lack of a long-run tradeoff between the unemployment rate and the inflation rate means the long-run Phillips curve is

• A) downward sloping.
• B) vertical.
• C) horizontal.
• D) upward sloping.
• E) U-shaped, with higher inflation initially decreasing unemployment and then increasing it back to the natural unemployment rate.

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Definitions:

Methanesulfonic Acid

A strong organic sulfonic acid with the chemical formula CH3SO3H, used as a catalyst in organic syntheses and as a solvent.

Ethanol

A simple alcohol with the chemical formula C2H5OH, commonly used as a solvent, in beverages, and as a fuel additive.

Increasing Acidity

A term referring to the trend or condition under which the acidity of substances increases, typically influenced by structural or environmental factors.

Acid-Base Pair

Two substances that differ only by the presence or absence of a hydrogen ion and can interconvert by the gain or loss of a proton.