If actual inflation differs from expected inflation, what is the slope of the Phillips curve?
a. It is horizontal in the short and long run.
b. It is upward sloping in the short run and vertical in the long run.
c. It is vertical in the short run and upward sloping in the long run.
d. It is downward sloping in the short run and vertical in the long run.
d
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Prices of industrial products and wages tend to be the most "flexible."
Indicate whether the statement is true or false
Along a straight-line demand curve (dropping all minus signs), the price elasticity of demand
A. gets larger as quantity demanded gets larger. B. gets smaller as quantity demanded gets larger. C. always equals one. D. is constant (though not necessarily equal to one).
Under the perfectly competitive market structure, the demand curve of an individual firm is
A) perfectly inelastic. B) downward sloping. C) relatively inelastic. D) perfectly elastic.
If the AD curve shifts rightward more than expected,
What will be an ideal response?