Which of the Following Statements Would Be True If the Short-Run

question 133

Multiple Choice

Which of the following statements would be true if the short-run Phillips curve relationship held in the long run?

• A) A central bank has no control over unemployment.
• B) Only monetary policy,not fiscal policy,has any real effects on the economy.
• C) Prices fully adjust in the long run.
• D) A central bank can always steer an economy out of recession,simply through creating inflation.
• E) Expansionary monetary policy can decrease inflation at the expense of unemployment.

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Definitions:

Tax Withholdings

Amounts of money withheld from an employee's salary by an employer for payment of taxes.

Pay Payroll Liabilities

The process of compensating employees and settling amounts owed for payroll taxes, insurance, and other deductions.

Reconcile Payroll

The process of verifying and adjusting the accuracy of payroll records to ensure they match transaction records.

Print Payroll Report

The process of generating and printing a report that details the wages, salaries, and other compensation paid to employees over a specific period.