Which of the Following Is True

question 82

Multiple Choice

Which of the following is true?

• A) The Phillips curve trade-off holds in the long run but not necessarily in the short run because of randomness in markets.
• B) A.W. Phillips' original work related changes in unemployment and changes in prices; later economists demonstrated that there was also a trade-off between changes in prices and changes in unemployment.
• C) In the short run, there is a trade-off between inflation and unemployment even if the change in aggregate demand is expected.
• D) Although a trade-off exists in the short run, in the long run, the Phillips curve is vertical.

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Definitions:

At-will Doctrine

A legal concept in employment law that allows either the employer or the employee to terminate employment at any time, for any reason.

Conditions of Employment

The terms and circumstances under which employees are hired, including work hours, salary, benefits, job responsibilities, and work environment.

Private Sector

The part of the economy that is run by individuals and companies for profit and is not controlled by the government.

Public Sector

The portion of the economy composed of government services and public enterprises.