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IrinaVladis [17]
3 years ago
12

According to the long-run Phillips Curve:

Business
1 answer:
Oxana [17]3 years ago
7 0

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

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"Your customer, age 68, who has an IRA account at your firm valued at $500,000, passes away. The customer leaves the account to
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If she had her own IRA account (which is doubtful since she doesn't work), she could also roll over her late spouse's balance into her own account.

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3 years ago
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