What is the difference between the short-run Phillips curve and the long-run Phillips curve?
a. The long-run Phillips curve is horizontal, indicating that the unemployment rate may change but inflation remains the same, whereas the short-run curve is vertical.
b. The long-run Phillips curve slopes upward, indicating a positive relationship between the unemployment rate and inflation, whereas the short-run curve slopes downward.
c. The long-run Phillips curve is vertical, indicating that the unemployment rate may change but inflation does not, whereas the short-run curve is positively sloped.
d. The long-run Phillips curve is vertical, indicating that inflation may change but the unemployment rate does not, whereas the short-run curve is negatively sloped.
e. The long-run Phillips curve is negatively sloped, indicating an inverse relationship between unemployment and inflation, whereas the short-run curve is vertical.
Question 2
After a binding price floor becomes effective, a
a. smaller quantity of the good is exchanged.
b. a larger quantity of the good is demanded.
c. a smaller quantity of the good is supplied.
d. All of the above are correct.
A sigmoid (cooperative) binding curve
A photograph of Commodore Matthew Perry in 1855 juxtaposed with a Japanese portrait of him. When Per
Varieties of Long-Term Memory
Long-Range Forecasts
IQ scores form what mathematicians call a normal distribution "bell curve"
Type III curve. Mortality is highest early in life. Data for a desert shrub (Cleome droserifolia).