The long-run Phillips curve shows the relationship between ________ and ________ when the economy is at full employment.
A) the natural inflation rate; the unemployment rate
B) the unemployment rate; real GDP
C) potential GDP; the natural unemployment rate
D) the inflation rate; the unemployment rate
E) the inflation rate; the nominal interest rate
Correct Answer:
Verified
Q58: In the short run, a decrease in
Q59: The short-run Phillips curve is
A) vertical at
Q60: If aggregate demand decreases, the
A) short-run Phillips
Q61: The long-run Phillips curve shows the relationship
Q62: The long-run Phillips curve is a
A) horizontal
Q64: The long-run Phillips curve applies when the
Q65: At full employment,
A) real GDP exceeds potential
Q66: The long-run Phillips curve is a vertical
Q67: In the long run, the unemployment rate
A)
Q68: If the economy is at full employment,
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