If Firms and Workers Have Rational Expectations,including Knowledge of the Policy

question 123

Multiple Choice

If firms and workers have rational expectations,including knowledge of the policy being used by the Federal Reserve,the short-run Phillips curve will be

• A)negatively sloped.
• B)positively sloped.
• C)vertical.
• D)flatter in the long run than it is in the short run.

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Definitions:

Low Frequency

Low frequency refers to a band of frequencies that are considered to be at the lower end of the audio spectrum, typically below 300 Hz.

High Amplitude

Pertains to waves or signals with a large maximum distance from the average or rest position, often indicating a high level of energy.

Low Amplitude

Refers to waves or signals of small height or intensity, often used in the context of vibrations, sound, or electrical signals.

Nerve Impulses

Electrical signals that travel along nerve fibers, used for communication within the nervous system.