The Fact That the Long-Run Phillips Curve Is Vertical Implies

question 45

Multiple Choice

The fact that the long-run Phillips curve is vertical implies that

• A)monetary policy can't affect unemployment.
• B)money is neutral in the long run.
• C)there is a natural rate of inflation.
• D)money can't affect inflation in the long run.

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Definitions:

Inflation

A general rise in the price level.

Public Assistance

Government programs designed to provide financial aid to individuals and families in need, including healthcare, food assistance, and housing subsidies.

Economic Conditions

The state of an economy at a given time, including factors like unemployment rates, inflation rates, and GDP growth.

Charles Murray

An American political scientist known for his controversial works on intelligence and social policy.