If the long-run Phillips curve is vertical, then any government policy designed to lower:
a. unemployment will not change the unemployment rate and only increase the inflation rate.
b. unemployment will work leaving the inflation rate unchanged.
c. inflation will cause employment to rise.
d. unemployment will work causing the inflation rate to fall.
e. unemployment will work causing inflation to rise.
a
You might also like to view...
All of the following might explain a firm offering quantity discounts except:
a. the lower costs of handling large orders. b. an inelastic demand for the good. c. a monopoly power in this market. d. the adoption of a sales maximization strategy.
Choices made by economic decision makers
a. are government decisions only b. are the primary focus of economics c. are not important in economic analysis d. occur infrequently e. do not involve ordinary citizens