If Employees and Employers Always Accurately Forecast Inflation,what Is the Shape

question 16

Multiple Choice

If employees and employers always accurately forecast inflation,what is the shape of the Phillips curve?

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

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Definitions:

Intellectual Asset

Knowledge, information, or a creative expression that has value to an organization or individual, often protected by intellectual property rights.

Knowledge

The information, understanding, and skills gained through experience or education; the theoretical or practical understanding of a subject.

Wisdom

Wisdom is the ability to use knowledge and experience with insight and judgement to make well-informed decisions.

Viscous

Describes a fluid's resistance to flow; fluids with higher viscosity flow more slowly, as in the case of honey or oil.