According to the Phillips Curve,unemployment and Inflation Are Negatively Related

question 121

Multiple Choice

According to the Phillips curve,unemployment and inflation are negatively related in

• A)the short run and in the long run.
• B)the short run,but not in the long run.
• C)the long run,but not in the short run.
• D)neither the long run nor the short run.

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Definitions:

Eurodollars

Dollar-denominated deposits at foreign banks or foreign branches of American banks.

Futures Contract

An agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

CAPM

The Capital Asset Pricing Model, a theoretical framework used to determine the expected return on an investment, considering risk and the time value of money.

APT

Stands for Arbitrage Pricing Theory, a financial model that estimates the returns on assets based on their risk relative to macroeconomic factors.