Question:medium

Select correct answers in regard of Phillips curve: A. The short run Phillips curve is negative sloped, B. Long run Phillips curve is steeper in slope than short run curve, C. Over the time Phillips curve has tendency to be parallel to x-axis, D. The Phillips curve shows positive relationship between inflation and money, E. Inflation expectations plays a major role in wage negotiations.

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Short-run Phillips curve is downward sloping, while long-run Phillips curve is generally vertical. Expectations are important in modern Phillips curve analysis.

Updated On: May 22, 2026

A, B, C Only
A, B, E Only
A, C, D, E Only
A, B, C, D, E

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The Correct Option is B

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