The Fact That the Long-Run Phillips Curve Is Vertical Implies

question 45

Multiple Choice

The fact that the long-run Phillips curve is vertical implies that

• A)monetary policy can't affect unemployment.
• B)money is neutral in the long run.
• C)there is a natural rate of inflation.
• D)money can't affect inflation in the long run.

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Definitions:

Cause-Effect Relationships

The principle that an action or event (cause) will produce a certain response or outcome (effect).

Hawthorne Effect

The alteration of behavior by the subjects of a study due to their awareness of being observed, as first identified in research at the Hawthorne Works plant.

Motivational and Emotion Theory

A framework exploring how motivation and emotions influence human behavior, decision-making, and interactions.

Own Goals

In sports, an act of scoring a point or goal against one's own team, often resulting from a mistake or miscalculation.