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:

Stock Dividend

A dividend payment made in shares of stock rather than cash, allowing shareholders to increase their shareholding without directly purchasing additional shares.

Treasury Stock

These are shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Foreign Currency Translation

The process of converting the financial statements of a company into the currency of the primary economic environment in which it operates.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, often referred to as shareholders' equity.