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

question 14

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.

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Definitions:

Spider Monkey

A type of New World monkey known for its long limbs and tail, primarily living in the canopies of tropical forests.

Chimpanzee

A great ape with large ears, mainly black coloration, and lighter skin on the face, native to the forests of central and West Africa.

Orangutan

A large arboreal ape found in the rainforests of Borneo and Sumatra, known for its intelligence, long arms, and reddish-brown hair, and facing significant threats from habitat loss.

Restricted Diet

A diet limited in certain foods or nutrients, often for medical reasons or personal choice.