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

question 42

Multiple Choice

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

• A) has a slope that is determined by how fast people adjust their price expectations.
• B) is negatively sloped.
• C) is vertical.
• D) is positively sloped.

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Definitions:

Imitative Behavior

The action of copying or mimicking the behavior, actions, or gestures of others as a form of learning or social interaction.

Interneurons

A type of neuron that transmits signals between sensory neurons and motor neurons, playing a critical role in reflexes and the central nervous system's processing of information.

Shaping

A procedure for teaching complex behaviors that at first reinforces approximations of the target behavior.

Behavioral Goal

A behavioral goal is an objective designed to modify an individual's actions or responses to achieve a desired outcome.