The Traditional Short-Run Phillips Curve Implies That

question 71

Multiple Choice

The traditional short-run Phillips curve implies that

• A) a central bank has no impact on the unemployment rate.
• B) a central bank has no impact on inflation.
• C) a central bank can choose higher or lower unemployment rates simply by adjusting the rate of inflation in an economy.
• D) prices are completely flexible.
• E) unemployment and inflation are unrelated.

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Definitions:

Stratification Theories

Theories that emphasize that social forces—particularly those related to a person’s social stratum or social category—limit individual choices, and affect a person’s ability to function in late adulthood because past stratification continues to limit life in various ways.

Organize

The act of arranging or structuring things in a systematic way for efficiency or order.

Socio-Emotional Selectivity Theory

The theory that older people prioritize regulation of their own emotions and seek familiar social contacts who reinforce generativity, pride, and joy.

Generativity

A concern for establishing and guiding the next generation, typically observed during middle adulthood.