Which of the Following Statements About the Long-Run Phillips Curve

question 118

Multiple Choice

Which of the following statements about the long-run Phillips curve is CORRECT?

• A) The long-run Phillips curve is horizontal.
• B) The long-run Phillips curve shifts leftward if the natural unemployment rate decreases.
• C) The long-run Phillips curve shifts rightward and upward if the expected inflation rate increases.
• D) The long-run Phillips curve shifts leftward if the natural unemployment rate increases.

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Definitions:

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of the numbers.

Causal Factors

Elements or conditions that can directly influence the occurrence or development of a phenomenon or outcome.

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The effectiveness of a treatment or intervention when applied to a broad population under 'real-world' conditions.

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Actions or processes conducted to modify an outcome or conditions in a study or therapeutic context.