If the Long-Run Phillips Curve Is Vertical, Then Any Government

question 57

Multiple Choice

If the long-run Phillips curve is vertical, then any government policy designed to lower:

• A)unemployment will not change the unemployment rate and only increase the inflation rate.
• B)unemployment will work leaving the inflation rate unchanged.
• C)inflation will cause employment to rise.
• D)unemployment will work causing the inflation rate to fall.
• E)unemployment will work causing inflation to rise.

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Definitions:

TSX

Toronto Stock Exchange, the largest stock exchange in Canada, where stocks, bonds, and other securities are bought and sold.

Incentive Schemes

Programs designed to motivate and compensate employees, often tied to performance criteria to enhance productivity and achieve corporate goals.

Ethical Behaviour

Conduct that is in accordance with accepted principles of right or wrong governing the conduct of a profession or individual.

Whistle Blowers

Individuals who expose information or activity within a private, public, or government organization that is deemed illegal, unethical, or not correct.