In the Phillips Curve $\Delta \pi _ { t } = \overline { \boldsymbol { v } } \tilde { Y } _ { t } + \bar { a }$

question 7

Multiple Choice

In the Phillips curve, $\Delta \pi _ { t } = \overline { \boldsymbol { v } } \tilde { Y } _ { t } + \bar { a }$ , if $\overline { \boldsymbol { v } }$ Is large, then:

• A) price-setting behavior is completely insensitive to short-run fluctuations
• B) price-setting behavior is very insensitive to short-run fluctuations
• C) inflation is not very sensitive to short-run fluctuations
• D) price-setting behavior is very sensitive to short-run fluctuations
• E) Not enough information is given.

---

Definitions:

Death

The cessation of all biological functions that sustain a living organism, marking the end of its life.

United States

A country located primarily in North America, comprising 50 states, a federal district, and various territories.

Cancer

A disease characterized by the uncontrolled division and spread of abnormal cells in the body, potentially leading to death if not treated.

Psychoneuroimmunology

A field in which psychologists, biologists, and medical researchers combine their expertise to study the effects of psychological factors on the immune system.