If the Long-Run Phillips Curve Is Vertical,expansionary Monetary and Fiscal

question 43

Multiple Choice

If the long-run Phillips curve is vertical,expansionary monetary and fiscal policies that attempt to reduce the unemployment rate below its natural rate

• A) lower inflationary expectations.
• B) eliminate the wage-price spiral.
• C) lead to accelerating rates of inflation.
• D) shift the short-run Phillips curve downward to the left.
• E) reduce the consumer price index.

---

Definitions:

Biological Preparedness

The idea that people and animals are inherently inclined to form associations between certain stimuli and responses, facilitating survival-based learning.

Conditioned Taste Aversions

The learned aversion to a particular taste or food that has been associated with illness or nausea.

Long-Term Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of time without exposure to the conditioned stimulus.

Thorndike

An American psychologist known for his work in the field of learning, particularly the law of effect.