Solved

The Short-Run Phillips Curve Shows Only a Short-Run Tradeoff Between

Question 43

Multiple Choice

The short-run Phillips curve shows only a short-run tradeoff between the unemployment rate and the inflation rate because in the long run the


A) expected inflation rate increases.
B) natural unemployment rate increases.
C) inflation rate returns to the natural inflation rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
D) unemployment rate returns to the natural unemployment rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
E) inflation rate returns to the natural inflation rate and the unemployment rate returns to the natural unemployment rate.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents