One Implication of the Phillips Curve Analysis Is That

question 101

Multiple Choice

One implication of the Phillips curve analysis is that:

• A)unemployment rates below the natural rate are only possible in the long run.
• B)unemployment rates below the natural rate lead to falling rates of inflation in the long run.
• C)if inflationary expectations are accurate,the economy is on the short-run Phillips curve but not on the long-run Phillips curve.
• D)unemployment rates below the natural rate may be achieved only with rising inflation rates.
• E)the natural rate of unemployment is strictly a short-run phenomenon.

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Definitions:

Attitudes

A settled way of thinking or feeling about something, typically reflected in a person's behavior or actions.

Influences

Forces or factors that have an effect on the actions, behavior, opinions, or development of someone or something.

Mere Exposure Effect

An effect that occurs when people hold a positive attitude toward a stimulus simply because they have been exposed to it repeatedly.

Classical Music

A genre of music that spans a period from roughly the 11th century to the present day, characterized by its complex structure and written in musical notation.