The Long-Run Phillips Curve Is a

question 12

Multiple Choice

The long-run Phillips curve is a

• A)straight line with a 45° slope showing the long-run relationship between the inflation rate and the expected inflation rate.
• B)horizontal line that shows the relationship between inflation and unemployment when the economy is at full employment.
• C)vertical line indicating a positive relationship between inflation and unemployment.
• D)horizontal line indicating a positive relationship between inflation and unemployment.
• E)vertical line that shows the relationship between inflation and unemployment when the economy is at full employment.

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Definitions:

Journal Entry

A record in accounting that represents the debit and credit sides of a transaction, reflecting changes in account balances.

Invoice

A document issued by a seller to a buyer that lists goods or services provided, their prices, and the total amount owed.

Prepaid Services

Expenses paid in advance for services which are to be received in the future.

Unearned Fees

Income received by a business for services not yet performed or goods not yet delivered.