Which of the Following Represents the Expectations-Augmented Phillips Curve

question 23

Multiple Choice

Which of the following represents the expectations-augmented Phillips curve?

• A)Anticipated inflation rate is proportional to the cyclical unemployment rate.
• B)Unanticipated inflation rate is proportional to the cyclical unemployment rate.
• C)Unanticipated inflation rate is proportional to unemployment rate.
• D)Anticipated inflation rate is proportional to unemployment rate.

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Definitions:

Express Authority

The power granted to an agent or entity explicitly and clearly by the principal or by law.

Actual Authority

The power granted to an agent by a principal to legally bind the principal in transactions with third parties.

Principals

The parties who are directly involved and have the major interests in a legal transaction or agreement.

Contractual Relationship

An agreement between entities, enforced by law, that outlines obligations and benefits for each party.