Which of the Following Explains Why the Original Phillips Curve

question 44

Multiple Choice

Which of the following explains why the original Phillips curve relation disappeared or,as some economists have remarked,"broke down" in the 1970s?

• A)Individuals assumed the expected price level for the current year would be equal to the actual price level from the previous year.
• B)Individuals assumed that expected inflation would be zero
• C)Individuals changed the way they formed expectations of inflation.
• D)Monetary policy became contractionary.
• E) More labor contracts became indexed to changes in inflation.

Recognize the conditions under which a firm decides to continue operations or shut down in the short run.

Analyze the effects of output changes on costs and the decision-making process in both short-run and long-run scenarios.

Understand the definitions and characteristics of nonexperimental and experimental research methods.

Recognize the elements of inferences of cause and effect, including temporal precedence, covariation, and elimination of other causes.

---

Definitions:

Parenchyma

Plant tissue composed of the least-specialized of all plant cells; found in all organs of a plant.

Collenchyma

Plant tissue composed of cells with unevenly thickened walls; supports growth of stems and petioles.

Sclerenchyma

Plant tissue composed of cells with heavily lignified cell walls; functions in support.

Meristematic Tissue

Plant tissue composed of undifferentiated cells capable of continuous division, responsible for growth and the generation of new organs.