A Big Advantage of a Policy Designed to Gradually Reduce

question 33

Multiple Choice

A big advantage of a policy designed to gradually reduce the rate of inflation is that

• A)it gives the appearance of a reasoned and steady approach, which is important if inflationary expectations have to be lowered fast
• B)the unemployment rate does not increase significantly so there is little political pressure to abandon the policy
• C)it has great credibility
• D)prices are affected before real output
• E)it lowers inflationary expectations faster than the cold turkey approach

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Definitions:

Positivist Sociologists

Scholars who apply the scientific method and empirical evidence to the study of social life, aiming to discover patterns and laws that govern human behavior.

Deviant Behavior

Engaging in actions that defy social norms or values, which can range from minor breaches of etiquette to major violations such as criminal acts.

Positivist Perspective

A philosophical stance emphasizing observable, scientific facts and their relationships, often associated with a belief in progress and rational explanation.

Observable Object

Any entity or phenomenon that can be perceived or measured by human senses or instruments.