In the Long Run, the Classical Dichotomy Holds That

question 27

Multiple Choice

In the long run, the classical dichotomy holds that:

• A) money is not neutral.
• B) there is constant tension between inflation and unemployment.
• C) the inflation and unemployment rates are zero.
• D) steady-state growth is a constant 2 percent.
• E) there is no trade-off between inflation and real GDP.

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Definitions:

Industrialized West

Refers to Western countries that have undergone industrialization, characterized by economic development, advanced technology, and a shift from agricultural to manufacturing and service industries.

Agricultural Development

The strategic enhancement of agricultural productivity and the expansion of farming practices to meet increasing food demands.

Modernization

The process of adopting modern ways of life and ideas, often involving technological advancements, urbanization, and social and economic changes.

Circumnavigation

The act of traveling all the way around an island, continent, or the entire planet, either by ship or aircraft.