Which of the following statements would be true if the short-run Phillips curve relationship held in the long run?
A) A central bank has no control over unemployment.
B) Only monetary policy,not fiscal policy,has any real effects on the economy.
C) Prices fully adjust in the long run.
D) A central bank can always steer an economy out of recession,simply through creating inflation.
E) Expansionary monetary policy can decrease inflation at the expense of unemployment.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements would be true if the short-run Phillips curve relationship held in the long run?
A) A central bank has no control over unemployment.
B) Only monetary policy,not fiscal policy,has any real effects on the economy.
C) Prices fully adjust in the long run.
D) A central bank can always steer an economy out of recession,simply through creating inflation.
E) Expansionary monetary policy can decrease inflation at the expense of unemployment.

Which of the Following Statements Would Be True If the Short-Run