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:

Hidden Homeless

Individuals who do not have stable, permanent housing but are not visibly living on the streets; often staying with friends, in shelters, or in temporary accommodations.

Financial Problems

Difficulties in managing money effectively, resulting in insufficient funds to cover expenses or debts.

Working Mothers

Women who balance employment with the responsibility of raising children, often facing challenges related to work-life balance, childcare, and societal expectations.

Lower Wage

A term referring to earnings that are below the average or median level of pay in a given region, sector, or occupation.