If the Long-Run Aggregate Supply Curve Is Vertical

question 7

Multiple Choice

If the long-run aggregate supply curve is vertical,

• A)the economy stays at the natural rate of inflation in the long run.
• B)the short-run Phillips curve must be vertical.
• C)unemployment and inflation are positively related in the long run.
• D)the trade-off between unemployment and inflation cannot be permanent.
• E)any changes in the unemployment rate will be permanent.

---

Definitions:

Aversive Events

Negative experiences or stimuli that an individual seeks to avoid or escape from, often used in conditioning and behavioral therapies.

Retail Therapy

The act of shopping with the intention of improving one's mood or emotional state.

Self-Indulgence

Excessive or unrestrained gratification of one's own appetites, desires, or whims.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension.