Which of the Following Does the Long-Run Phillips Curve Tell

question 18

Multiple Choice

Which of the following does the long-run Phillips curve tell us?

• A) That the Fed can select any rate of unemployment it wants in the long run
• B) That the Fed can select any rate of inflation and unemployment rate it wants in the long run
• C) That the Fed can select neither the rate of inflation nor the rate of unemployment in the long run
• D) That there is a tradeoff between the rate of inflation and the rate of unemployment in the long run
• E) That the Fed can select any rate of inflation it wants in the long run

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, preparing the books for the next period.

End-Of-Period Spreadsheet

A financial report used to compile and summarize the accounting information at the end of an accounting period, including balances for assets, liabilities, and equity.

Income Statement Columns

Divisions in the income statement document that categorize and display revenues, expenses, and profit or loss data.

Net Income

A company's profit margin post the deduction of all expenses and taxation from the total revenue.