A Long-Run Phillips Curve Has A(n) _____ Slope Because _____

question 65

Multiple Choice

A long-run Phillips curve has a(n) _____ slope because _____.

• A) negative; there is a positive relationship between the output gap and the nonaccelerating inflation rate of unemployment (NAIRU)
• B) infinite; any unemployment rate below the NAIRU leads to ever-accelerating inflation
• C) zero; there is a positive relationship between expected inflation and unemployment
• D) positive; any unemployment rate above the NAIRU leads to ever-accelerating inflation

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Definitions:

Raw Material

Basic materials that are used in the production of goods, including minerals, oils, wood, and grains.

Inventory Services

Services that assist in managing stock levels, including counting, monitoring, and reordering products.

Quality Assurance

A systematic process designed to determine if a product or service meets specified requirements.

Capital Acquisitions

The process of acquiring fixed, long-term assets that are intended to be used in the production of goods or services for generating future revenue.