Only the Short-Run Phillips Curve Is Downward Sloping Because

question 9

Multiple Choice

Only the short-run Phillips curve is downward sloping because

• A) in the long run,prices adjust,eliminating the relationship between inflation and unemployment.
• B) in the long run,prices are sticky,eliminating the relationship between inflation and unemployment.
• C) central banks have no influence over the economy in the short run.
• D) central banks only have influence over the economy in the long run.
• E) long-run effects of monetary policy are negated by fiscal policy.

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Definitions:

Expectancy Theory

A psychological theory that proposes that an individual will act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the outcome of that selected behavior will be.

Similar Job Class

Positions or roles within an organization that have comparable responsibilities, required skills, and qualifications.

Salaried Employees

Workers who are paid a fixed regular amount by their employer, typically on a monthly or biweekly basis, regardless of hours worked.

Hourly Work

Work paid on an hourly basis.