At equilibrium, the market will clear, with no surpluses or shortages occuring

Indicate whether the statement is true or false.

Answer: True.

Economics

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The lack of a long-run tradeoff between the unemployment rate and the inflation rate means the long-run Phillips curve is

A) horizontal. B) vertical. C) upward sloping. D) downward sloping. E) U-shaped, with higher inflation initially decreasing unemployment and then increasing it back to the natural unemployment rate.

Economics

In the IS-LM-PC model, LM curve is

A) flat. B) upward sloping. C) downward sloping. D) vertical.

Economics