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:

Self-confidence

A person's belief in their own abilities, qualities, and judgment, fostering a positive view of oneself.

Self-efficacy

A person's confidence in their capability to achieve success in particular scenarios or complete a given task.

Self-image

The mental picture one forms about oneself, encompassing beliefs, attitudes, and perceptions about personal ability and appearance.

Self-serving Bias

The tendency to attribute positive events to one's own character but attribute negative events to external factors.