The Short-Run Phillips Curve Relationship Implies That the Inflation Rate

question 288

Multiple Choice

The short-run Phillips curve relationship implies that the inflation rate

• A) is higher when the actual unemployment rate is also higher.
• B) is higher when the actual unemployment rate is lower.
• C) is higher when the natural unemployment rate is also higher.
• D) is constant regardless of the actual unemployment rate.

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Definitions:

Language Acquisition Device

A theoretical construct in the field of linguistics that suggests an innate capability or mechanism in the human brain that allows children to naturally learn language.

Neural Prewiring

The pre-established network of neurons in the brain, responsible for innate abilities and predispositions.

Grammar

The set of structural rules governing the composition of phrases, clauses, and words in any given natural language.

Deep Structure

The underlying meaning of a sentence.