Which of the Following Statements Characterizes the Nature of the Long-Run

question 34

Multiple Choice

Which of the following statements characterizes the nature of the long-run Phillips curve?  

• A) No event can shift the curve rightward because the curve can only be shifted leftward. 
• B) No event can shift the curve leftward because the curve can only be shifted rightward. 
• C) Only fiscal and monetary policy can shift the curve. 
• D) Demand-side policy CANNOT shift the curve.

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Definitions:

Dependent Variables

Variables in an experiment or model that are expected to change in response to changes in the independent variables.

Stepwise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure, adding or removing variables based solely on statistical criteria.

Stepwise Regression

A regression analysis technique where an automatic process is used to select the predictive variables.

Preliminary Tool

An initial instrument or technique used in the early stages of research to help gather data, assess theories, or guide a study's direction.