The Long-Run Phillips Curve Is a Vertical Line Because

question 5

Multiple Choice

The long-run Phillips curve is a vertical line because

• A) the unemployment rate decreases when the inflation rate increases.
• B) there is no relationship between the natural unemployment rate and the inflation rate.
• C) the natural unemployment rate only depends on the inflation rate.
• D) real GDP does not depend on the unemployment rate.
• E) in the long run, the natural unemployment rate increases when inflation increases.

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Definitions:

Leash Law

Regulations requiring dogs to be kept on a leash in public areas to ensure safety and prevent nuisances.

Legal Realism

A school of thought that suggests laws are created and enforced by the judiciary based on social interests and public policy rather than merely by applying existing legal rules.

Social Conditions

The prevailing cultural, economic, and environmental factors influencing the quality of life and wellbeing of a society or community.

Economic Conditions

The state of an economy at a given time, including factors like inflation, employment rates, and GDP growth.