The Fact That the Average Unemployment Rate During the 1950s

question 73

Multiple Choice

The fact that the average unemployment rate during the 1950s and early 1960s was roughly the same as the average unemployment rate during the late 1960s and 1970s, which was roughly the same as the average unemployment rate during the 1980s and 1990s, shows that

• A)there is not even a short-run tradeoff between unemployment and inflation.
• B)it is also possible for there to be a long-run tradeoff between inflation and unemployment.
• C)there are many issues that the AD-IA analysis cannot address.
• D)it is possible to have high inflation monetary policy without long-run pain.
• E)there is no long-run tradeoff between inflation and unemployment.

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Definitions:

Extra Shift

An additional work period taken on by an employee, beyond their regular working hours.

Actor-Observer Effect

A cognitive bias involving the tendency to attribute one's own actions to external causes while attributing others' behaviors to their character.

Situational Causes

Factors relating to the environment or specific circumstances outside an individual that contribute to their behavior.

Different Perspective

Viewing situations, problems, or concepts from an alternative or contrasting viewpoint, often revealing new insights or understanding.