Critics of the Phillips Curve Contend That in the Long

question 97

Multiple Choice

Critics of the Phillips curve contend that in the long run

• A)there is a trade-off between unemployment and inflation.
• B)for any given unemployment level there is a corresponding inflation rate to which the economy will automatically revert.
• C)employees are not able to anticipate future rates of inflation,and therefore unemployment can always be reduced by inflating the economy.
• D)there is no useful trade-off between inflation and unemployment because workers' expectations adjust to any systematic attempts to reduce unemployment below the natural rate.

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Definitions:

Ratification

The act of officially approving an agreement or treaty, often by a vote or other formal decision.

Real Authority

The actual power given to an agent or representative to act on behalf of another person or entity in legal or business matters.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principle, leading a third party to believe that an agent has the authority to act.

Sole Proprietorship

A Sole Proprietorship is a type of business entity that is owned and run by one individual, with no distinction between the business and the owner, making the owner personally liable for the debts of the business.