Which of the following is FALSE? O a. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables. O b. O c. None of the other choices is false. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations. Od. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate.

Which of the following is FALSE? O a. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables. O b. O c. None of the other choices is false. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations. Od. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Aggregate Supply

Section: Chapter Questions

Problem 1.1P

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