Both Classicals and Keynesians Agree That Policymakers

question 21

Multiple Choice

Both classicals and Keynesians agree that policymakers

• A)can exploit the Phillips curve in the short run.
• B)cannot exploit the Phillips curve in the short run.
• C)can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
• D)cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.

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Definitions:

Dummy Variables

In statistical modeling, these are artificial variables created to represent an attribute with two or more distinct categories or levels.

Regression Analysis

A statistical method used to explore the relationship between a dependent variable and one or more independent variables.

Sum Of Squares

A statistical technique used to measure the dispersion or variation within a data set by squaring the differences from the mean and summing all the resulting squares.

Observed Errors

The discrepancies between measured values and the true values, often due to measurement limitations or external factors.