In the Long Run, the Phillips Curve Will Be Vertical

question 256

Multiple Choice

In the long run, the Phillips curve will be vertical at the natural rate of unemployment if

• A) the long-run aggregate demand curve is vertical at potential output.
• B) the long-run aggregate demand curve is horizontal at the natural rate of inflation.
• C) the long-run aggregate supply curve is vertical at potential output.
• D) the long-run supply curve is horizontal at the natural rate of inflation.

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Definitions:

Managing Director

A corporate executive responsible for the daily operations and overall management of the company.

Doubtful Debts

Accounts receivable that a company believes are unlikely to be collected due to the debtor's financial difficulties.

Key Management Personnel

Individuals having authority and responsibility for planning, directing, and controlling the activities of an entity, typically including top-level managers and directors.