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:

Free Trade

An economic policy that allows goods and services to be exchanged across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

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The global network of economic activities and interactions among countries, involving trade, investment, finance, and labor, which influence the economic policies and conditions worldwide.

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