The Long-Run Phillips Curve Shows That

question 61

Multiple Choice

The long-run Phillips curve shows that:

• A)there is a trade-off between unemployment and inflation.
• B)an expansionary policy could lead to lower unemployment temporarily.
• C)the natural rate of unemployment occurs when the actual inflation rate equals the expected inflation rate.
• D)lower unemployment can be sustained indefinitely with continuous expansionary policies.

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Definitions:

Purchase Price

The amount paid to buy a good, service, or financial asset.

Off-Balance Sheet Lease Financing

Off-balance sheet lease financing involves leasing arrangements that are not recorded on a company's balance sheet, potentially making a company's financial condition appear stronger than it actually is.

Debt Ratio

A metric assessing a firm's leverage, determined by dividing its total liabilities by its total assets.

Lessee

A lessee is an individual or entity that leases an asset from another party, called the lessor, under the terms of a lease agreement.