The Long-Run Phillips Curve Indicates That

question 50

Multiple Choice

The long-run Phillips curve indicates that

• A) any inflation rate is possible at the natural unemployment rate.
• B) any unemployment rate is possible at the natural inflation rate.
• C) there is a tradeoff between the inflation rate and the unemployment rate in the long run.
• D) potential GDP can never be achieved.
• E) there is no way to control the inflation rate in the long run.

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Definitions:

Stimuli Organizing

The process of arranging or structuring sensory input into a coherent and understandable framework.

Linear Perspective

A form of perspective in art and drawing where parallel lines converge at a single point on the horizon to create the illusion of depth on a flat surface.

Depth Perception

The ability to perceive the visual world in three dimensions and to judge the distance of objects.

Clairvoyance

The supposed ability to gain information about an object, person, location, or physical event through means other than the known human senses.