For Most of the 1990s,the Phillips Curve Was

question 157

Multiple Choice

For most of the 1990s,the Phillips curve was

• A)fairly far to the right partly because of lower inflation expectations.
• B)fairly far to the left partly because of lower inflation expectations.
• C)fairly far to the right partly because of adverse supply shocks.
• D)fairly far to the left partly because of adverse supply shocks.

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Definitions:

Bilateral Monopoly Wage Rate

refers to the wage rate determined in a market where there is only one employer (a monopoly) and one union or employee (a monopsony), necessitating negotiation to reach an agreement on wages.

Perfectly Inelastic Supply

A market condition where the quantity supplied remains constant regardless of changes in price.

Bargaining Power

The relative capacity of parties in a negotiation to exert influence over each other, affecting the terms of the agreement.

Union Workers

Employees who are members of a labor union, which negotiates collective bargaining agreements on their behalf.