A Trade-Off Between Aggregate Output and Inflation

question 61

Multiple Choice

A trade-off between aggregate output and inflation

• A) is theoretically possible, but has never been observed in practice.
• B) may exist in the short run, but not in the long run.
• C) exists in both the short run and the long run.
• D) is part of the Keynesian sticky wage model.
• E) may exist in the long run, but not in the short run.

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