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.

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Definitions:

Disparity

A great difference or inequality between things or people.

Texture Gradients

The visual cue based on changes in pattern that provide information on an object's depth and distance.

Binocular Disparity

The slight difference in visual perspective seen by each eye, contributing to depth perception and three-dimensional vision.

Three-Dimensionality

The quality of having or appearing to have length, breadth, and depth.