The long-run Phillips curve shows the relationship between ...

[Medesa]

The long-run Phillips curve shows the relationship between ________ and ________ when the economy is at full employment.
 
  A) the inflation rate; the nominal interest rate
  B) the unemployment rate; real GDP
  C) potential GDP; the natural unemployment rate
  D) the inflation rate; the unemployment rate
  E) the natural inflation rate; the unemployment rate

Question 2

Maximum employment and moderate long-term interest rates are best achieved with
 
  A) price stability.
  B) high and variable inflation rates.
  C) high real interest rates.
  D) high and stable inflation rates.
  E) high short-term interest rates.

[rosiehomeworddo]

Answer to Question 1

D

Answer to Question 2

A

[Medesa]

Excellent

[kusterl]

TYSM