If the Long-Run Aggregate Supply Curve Is Vertical

question 195

Multiple Choice

If the long-run aggregate supply curve is vertical

• A)the economy stays at the natural rate of inflation in the long run.
• B)the short-run Phillips curve must be vertical.
• C)unemployment and inflation are positively related in the long run.
• D)the trade-off between unemployment and inflation cannot be permanent.

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Definitions:

High Ground

An area of elevated terrain that can provide strategic advantages, such as better visibility or defense, and is often sought after in military and construction contexts.

Tributaries

Streams or rivers that flow into a larger body of water, such as a larger river, lake, or ocean.

Subsidiary Channels

Secondary or minor channels or pathways that branch off from a main channel or river.

Main Channels

The primary paths or courses taken by a river or stream within its bed, directing the majority of flow and often deeper than adjacent areas.