The Rate of Inflation Increases When

question 83

Multiple Choice

The rate of inflation increases when

• A)the unemployment rate equals the NAIRU.
• B)the unemployment rate exceeds the NAIRU.
• C)the unemployment rate is less than the NAIRU.
• D)the unemployment rate increases faster than the NAIRU increases.

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Definitions:

Algorithm

A step-by-step procedure or formula for solving a problem.

Sunk Cost Effect

The phenomenon where a person is more likely to continue an endeavor once an investment in money, effort, or time has been made.

Spearman's "G" Factor

The concept proposed by Charles Spearman that suggests a single, general intelligence factor underlies all cognitive abilities.

Intelligence

The ability to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one's environment.