Which of the Following Will Time Inconsistency Cause

question 62

Multiple Choice

Which of the following will time inconsistency cause?

• A)It will cause the short-run Phillips curve to be higher than it otherwise would.
• B)It will cause the short-run Phillips curve to be lower than it otherwise would.
• C)It will cause the long-run Phillips curve to be farther to the right than it otherwise would.
• D)It will cause the long-run Phillips curve to be farther to the left than it otherwise would.

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Definitions:

Kennedy

Refers to John F. Kennedy, the 35th President of the United States, known for his leadership during the Cold War era.

Nixon

Nixon refers to Richard Nixon, the 37th President of the United States, known for his foreign policy achievements and the Watergate scandal which led to his resignation.

Radio

A technology for the transmission of sound or other signals by modulation of electromagnetic waves.

Television

Television is an electronic system of transmitting moving images and sound from a source to a receiver, creating a medium for broadcasting, entertainment, and information.