Which of the following is FALSE? O a. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate. O b. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations. O c. None of the other choices is false. O d. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables.
Which of the following is FALSE? O a. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate. O b. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations. O c. None of the other choices is false. O d. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Which of the following is FALSE?
O a. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate.
b. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations.
C. None of the other choices is false.
Od. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13fd94eb-5bbf-488a-add0-2333b87d868a%2Fb080ea75-7a07-46dd-8a45-3e443824e3d3%2F22s3z8m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following is FALSE?
O a. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate.
b. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations.
C. None of the other choices is false.
Od. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables.
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