All of the Following Are True Along a Long-Run Phillips

question 94

Multiple Choice

All of the following are true along a long-run Phillips curve except one.Which is the exception?

• A)unemployment is at the natural rate
• B)employers and workers have the time and ability to adjust fully to unexpected changes in aggregate demand
• C)the only choices for policy makers are different levels of inflation
• D)inflation and unemployment are inversely related
• E)changes in aggregate demand will have no effect in the long run on unemployment

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Definitions:

Habituation

The act of an organism diminishing or ending its responses to a repeated stimulus through time.

Reward

A stimulus or event that follows a behavior and increases the likelihood of that behavior occurring again.

Opponent Process Theory

A theory that explains emotional and motivational dynamics as the result of competing processes: an initial emotional reaction followed by an opposite counter-reaction.

Opponent Process Theory

A psychological and neurological model that explains how the perception of colors is controlled by two opposing systems: one that processes colors on a continuum from green to red and another from blue to yellow.