A Vertical Long-Run Phillips Curve Is Consistent with

question 174

Multiple Choice

A vertical long-run Phillips curve is consistent with

• A)the conclusion of Friedman and Phelps, but it is not consistent with the classical idea of monetary neutrality.
• B)the classical idea of monetary neutrality, but it is not consistent with the conclusion of Friedman and Phelps.
• C)both the conclusion of Friedman and Phelps and the classical idea of monetary neutrality.
• D)neither the conclusion of Friedman and Phelps nor the classical idea of monetary neutrality.

---

Definitions:

Legitimate Power

A form of power derived from having a recognized and official position within an organization, allowing the holder to influence others.

Information Flow

The movement of information within an organization, from the collection, processing, and dissemination of data, to effectively support decision-making and organizational activities.

Legitimate Power

The authority that a leader or an organization holds, which is recognized and accepted by others as rightful and appropriate.

Formal Authority

A type of power derived from the position or rank one holds within an organization, entitling them to enforce rules and make decisions.