The Short-Run Phillips Curve Is ________, While the Long-Run Phillips

question 23

Multiple Choice

The short-run Phillips curve is ________, while the long-run Phillips curve is vertical at the ________.

• A) downward sloping; real wage
• B) downward sloping; natural rate of unemployment
• C) upward sloping; minimum wage
• D) upward sloping; average nominal wage rate
• E) horizontal; origin

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Definitions:

Status Quo

The existing state of affairs or the current condition or situation, often referring to a stable or unchanging condition in societal or political contexts.

Bourbon Dynasty

A European royal house of French origin, known for its significant role in the history of France and other countries.

Second Treaty of Paris

Signed in 1815, this treaty formally ended the Napoleonic Wars, imposing harsher conditions on France than the 1814 treaty, including territorial losses and indemnities.