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Nadya [2.5K]
3 years ago
14

In the monetarist view, the long-run Phillips curve is____________.

Business
1 answer:
ollegr [7]3 years ago
6 0

Answer:

The correct answer is option E.

Explanation:

The Philips curve shows the inverse relationship between inflation and unemployment. The Philips curve, in the short run, is downward sloping L shaped indicating this inverse relationship.

But according to economists, in the long run, there is no trade-off between inflation rate and unemployment. The inflation and unemployment are related in the short run, they are not related in the long run.

The long-run Phillips curve is a vertical line at the point of the natural rate of unemployment.

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5 0
2 years ago
The presence of pollution in the dry cleaning industry leads in the long run to dynamic inefficiencies because:
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D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning

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3 years ago
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7 0
3 years ago
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