The Modern View of the Phillips Curve Indicates That in the Long

question 72

Multiple Choice

The modern view of the Phillips curve indicates that in the long run there

• A) is no trade-off between inflation and unemployment.
• B) is a definite trade-off between unemployment and inflation.
• C) will be a trade-off if the rational expectations hypothesis is correct.
• D) may be a long-run trade-off between unemployment and inflation, but there is no such trade-off in the short run.

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Definitions:

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development that describes how children develop intellectually throughout the course of childhood.

Egocentric

Having or regarding oneself as the center of all interests and perspectives, often ignoring others' viewpoints.

Sky Is Blue

A statement describing the appearance of the Earth's sky in clear conditions due to the scattering of sunlight by the atmosphere.

Centration

A cognitive limitation in early childhood development where a child focuses only on one aspect of an object or situation, overlooking others.