The Key Feature That Makes the Short-Run Phillips Curve Have

question 8

Multiple Choice

The key feature that makes the short-run Phillips curve have a negative slope-meaning that unexpected inflation decreases the unemployment rate-is that

• A) expectations are formed irrationally.
• B) reservation wages are fixed.
• C) workers behave irrationally.
• D) firms are greedy.
• E) government policy is time consistent.

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Definitions:

Red blood cells

The cells in blood responsible for carrying oxygen from the lungs to the rest of the body and returning carbon dioxide to be exhaled.

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.

Kidney failure

A medical condition where the kidneys lose the ability to adequately remove waste and excess fluids from the blood to be excreted in urine.

Erythrocyte count

The numerical measurement of red blood cells in a given volume of blood, important for diagnosing various health conditions.