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If the Long-Run Phillips Curve Is Vertical,expansionary Monetary and Fiscal

Question 43

Multiple Choice

If the long-run Phillips curve is vertical,expansionary monetary and fiscal policies that attempt to reduce the unemployment rate below its natural rate


A) lower inflationary expectations.
B) eliminate the wage-price spiral.
C) lead to accelerating rates of inflation.
D) shift the short-run Phillips curve downward to the left.
E) reduce the consumer price index.

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