If Employees and Employers Always Accurately Forecast Inflation, What Is

question 142

Multiple Choice

If employees and employers always accurately forecast inflation, what is the shape of the Phillips curve?

• A)​It is vertical in the short run, and upward sloping in the long run.
• B)​It is downward sloping in the short run, and vertical in the long run.
• C)​It is upward sloping in the short run, and horizontal in the long run.
• D)​It is vertical in the short run and long run.

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Definitions:

Characteristic

A feature or quality belonging typically to an individual, group, or situation, often used to define or distinguish.

Elements

Fundamental components or parts in a set or system.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed over a specific period of time.

Data Mining

The process of discovering patterns and knowledge from large amounts of data.