What Does a Vertical Phillips Curve in the Long Run

question 82

Multiple Choice

What does a vertical Phillips curve in the long run imply?

• A)​In the long run, the rate of unemployment will converge toward zero.
• B)​Higher inflation does not permanently reduce the rate of unemployment.
• C)​Higher inflation increases the rate of unemployment.
• D)​Higher inflation lowers the rate of unemployment.

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Definitions:

Far-Sightedness

A common vision condition, also known as hyperopia, where distant objects can be seen more clearly than near objects.

Retina

A layer of cells at the back of the eyeball containing photoreceptor cells, which convert light into electrical signals for vision.

Lens

A piece of transparent material, usually made of glass or plastic, which refracts or focuses light rays, often used in glasses, cameras, and microscopes.

Amplitude

In the context of waves, it is the height of the wave from its resting position, indicating the wave's strength or intensity.