The Long-Run Phillips Curve Suggests That Changing the Rate of Unemployment

question 143

True/False

The long-run Phillips curve suggests that changing the rate of unemployment in the economy has no impact on the inflation rate.

---

Definitions:

Weighted Average Cost

A calculation that takes into account the varying costs of goods or capital across different sources, weighted by their respective proportions in the total.

Marginal Tax Rate

The rate of tax applied to the next dollar of taxable income.

Pre-tax Cost

The expense or cost incurred by a corporation before the deduction of tax liabilities.

Pay Interest

The act of compensating lenders or depositors for the use of their money, typically expressed as an annual percentage of the principal.