Answer the following: (6%) (A) If wages are sticky in the
short-run, the short-run Phillips curve is downward sloping. TRUE /
FALSE (B) A downward sloping Philips curve implies that output
increases as inflation rises. TRUE / FALSE (C) An increase in
worker productivity brought about by the introduction of new
technology decrease aggregate demand, since workers will lose their
jobs. TRUE / FALSE (D) A decrease in expected inflation both the
short-run and the long-run Phillips curves to the left. TRUE /
FALSE (E) The long-run Phillips curve will be upward sloping if
persistent high inflation discourages investment in technological
improvement TRUE / FALSE (F) Since the short-run Philips curve is
downward sloping and the long-run Phillips curve is vertical there
can never be simultaneous unemployment inflation TRUE / FALSE
Answer the following: (6%) (A) If wages are sticky in the short-run, the short-run Phillips curve is downward sloping. T
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