Suppose an Economy Is Operating with a Recessionary Gap

question 53

Multiple Choice

Suppose an economy is operating with a recessionary gap. In this case, policymakers would seek to move the economy

• A) back down the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment.
• B) up the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment.
• C) back down the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment.
• D) up the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment.

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Definitions:

Hydrophilic

Hydrophilic substances are those that have an affinity for water, meaning they can dissolve in, absorb, or be wetted by water.

Polar

Relating to the extreme northern or southern regions of the Earth, characterized by extreme cold and ice-covered landscapes.

Hydrophobic Molecules

Molecules that repel water, typically nonpolar substances that do not mix with water.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.