If Actual Inflation Differs from Expected Inflation, What Is the Slope

question 37

Multiple Choice

If actual inflation differs from expected inflation, what is the slope of the Phillips curve?

• A)It is horizontal in the short and long run.
• B)It is upward sloping in the short run and vertical in the long run.
• C)It is vertical in the short run and upward sloping in the long run.
• D)It is downward sloping in the short run and vertical in the long run.

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Definitions:

Electrical Charges

A fundamental property of matter that causes it to experience a force when placed in an electromagnetic field. There are two types: positive and negative.

Emptiness

In philosophic and spiritual contexts, a concept highlighting the absence of inherent existence or essence in phenomena; in everyday use, the state of being empty.

Eddington

Sir Arthur Stanley Eddington was a British astronomer, physicist, and mathematician known for his work in astrophysics and for his popular science writings.

Substances

Material or matter with distinct physical properties, forming the fundamental components of the physical universe.