Which of the following is downward-sloping? a.both the long-run Phillips curve and the long-run aggregate-supply curve b.neither the long-run Phillips curve nor the long-run aggregate-supply curve c.the short-run Phillips curve, but not the long-run aggregate-supply curve d.the long-run Phillips curve, but not the long-run aggregate-supply curve

Long run Phillips curve is vertical or upward sloping, which determines that there is no relation…

Answered: Which of the following is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Which of the following is downward-sloping?

	a.	both the long-run Phillips curve and the long-run aggregate-supply curve
	b.	neither the long-run Phillips curve nor the long-run aggregate-supply curve
	c.	the short-run Phillips curve, but not the long-run aggregate-supply curve
	d.	the long-run Phillips curve, but not the long-run aggregate-supply curve

Definition Definition Relationship between the rate of unemployment and the rate of inflation that shows that the lower the initial rate of unemployment, the greater the rise in wage rate corresponding to a given rise in the rate of unemployment. The Phillips curve assumes that the ratio between prices and nominal wage rates is constant in the short run. Presented graphically, the Phillips curve shows an inverse relationship between the rate of unemployment and the rate of inflation.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions