If the long-run aggregate supply curve is vertical
A) the short-run Phillips curve must be vertical.
B) the economy stays at the natural rate of inflation in the long run.
C) the trade-off between unemployment and inflation cannot be permanent.
D) unemployment and inflation are positively related in the long run.
C
You might also like to view...
A black market can emerge for a good if ________
A) the good is taxed heavily B) there is an excess supply of a good C) the consumption of the good is subsidized D) the production of the good is subsidized
Cuba spends the highest percentage of GDP (18.7 percent) on education while the United States is the 38th highest spender with 5.7 percent of GDP
If spending on education is important for economic growth, which of the following statements explain why Cuba's economic growth rate is lower than the U.S. economic growth rate? (data from United Nations Human Development Programme) A) Cuba trades with many more countries than does the United States. B) Cuba doesn't offer property rights that promote innovation. C) Cuba's population is smaller than the U.S. population. D) all of the above explain why Cuba's economic growth rate is lower than the U.S. economic growth rate.