Which of the following is FALSE? O a. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate. O b. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations. O c. None of the other choices is false. O d. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables.
Which of the following is FALSE? O a. The higher beta is, the greater the sensitivity of inflation to gaps between unemployment and unemployment's natural rate. O b. The Phillips curve contains the previous-period inflation rate only if one assumes rational expectations. O c. None of the other choices is false. O d. The Phillips curve tells us that in the short run run nominal values can result in changes in real variables.
Chapter10: Aggregate Supply
Section: Chapter Questions
Problem 1.1P
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