Empirical Evidence Shows That the Short-Run Phillips Curve Was Vertical

question 115

True/False

Empirical evidence shows that the short-run Phillips curve was vertical during the 1950s and 1960s.

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Definitions:

Decrease

A reduction in size, quantity, or degree of something.

Substitutes

Goods or services that can be used in place of one another, where an increase in the price of one leads to an increase in demand for the other.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various prices.

Price

The amount of money required to purchase a good or service, determined by factors such as demand and supply.