If, in the Long Run, People Adjust Their Price Expectation

question 209

True/False

If, in the long run, people adjust their price expectation so that all prices and incomes move proportionately to an increase in the price level, then the long-run Phillips curve is vertical.

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Definitions:

Authoritative Style

A leadership approach characterized by firmness and control while also showing concern for the wellbeing of others.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Theorem

A statement that has been proven on the basis of previously established statements, such as other theorems, and generally accepted operations.

Conjecture

An opinion or conclusion formed on the basis of incomplete information, often involving guesswork or speculation.