If the Phillips Curve Is Vertical in the Long Run

question 253

Multiple Choice

If the Phillips curve is vertical in the long run, then

• A) there is a trade-off between inflation and unemployment in the long run.
• B) the inflation rate will always be zero in the long run.
• C) the unemployment rate will be zero in the long run.
• D) there is no trade-off between inflation and unemployment in the long run.

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Definitions:

Sale Price

The actual price at which a commodity or service is sold to customers.

Consolidation Journal Entries

Accounting entries used to adjust and combine the financial statements of a parent company and its subsidiaries for reporting purposes.