According to the Long-Run Phillips Curve, in the Long Run

question 158

Multiple Choice

According to the long-run Phillips curve, in the long run monetary policy influences

• A)both the inflation rate and the unemployment rate.
• B)the inflation rate but not the unemployment rate.
• C)the unemployment rate but not the inflation rate.
• D)neither the unemployment rate nor the inflation rate.

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Definitions:

Longitudinal Research

An approach in research involving repeated observations of the same variables (e.g., people) over short or long periods of time, from months to decades.

Pilot Research

An initial study conducted to test the feasibility of a project or experiment before a larger scale study is launched.

Third Variable

A factor that is not directly involved in the hypothesis being tested but may influence the relationship between the independent and dependent variables.

Reverse Causality

A situation in research or analysis where the direction of cause-and-effect is opposite to what is commonly presumed or is being investigated.