The Position of the Long-Run Phillips Curve Depends on What

question 183

Multiple Choice

The position of the long-run Phillips curve depends on what?

• A)the natural rate of unemployment
• B)the actual rate of unemployment
• C)the actual inflation rate
• D)the expected inflation rate

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Definitions:

Production Possibilities Frontier

A graphical representation showing the maximum combinations of goods and/or services that can be produced with a fixed set of resources.

Opportunity Cost

The lost benefit that could have been enjoyed if the chosen option had not been taken, implying the trade-off of forgoing the next best alternative.

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.