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.

---

Definitions:

Total Color Blindness

A rare vision condition where an individual cannot perceive any color at all, seeing only shades of gray.

Gestalt

A psychological approach emphasizing the holistic and innate patterns of organization in perception and problem-solving, rather than focusing on individual components.

Psychophysical

Relating to the relationship between psychological processes and physical phenomena.

Organizational

Pertaining to the structure or arrangement of components within a system, often used in the context of businesses or institutions.