The Modern View of the Phillips Curve Suggests That

question 149

Multiple Choice

The modern view of the Phillips curve suggests that

• A) when inflation is less than anticipated, unemployment will fall below the natural rate.
• B) when inflation is steady, actual unemployment will equal the natural rate of unemployment.
• C) systematic demand stimulus policies will be unable to affect prices in the long run.
• D) there will be a trade-off between inflation and unemployment in the long run.

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Definitions:

Last Stage

The final phase in a process, such as in product development or the life cycle of a product in the market.

Interest

A charge for borrowing money, typically a percentage of the borrowed amount, or intense curiosity or concern in something.

Awareness

The degree of consumer recognition of a product, brand, or issue, often as a result of marketing efforts.

Adoption

The act of beginning to use or accept something new, such as a product, idea, or behavior.