Among Other Things, What Determines the Long-Run Average Unemployment Rate

question 27

Multiple Choice

Among other things, what determines the long-run average unemployment rate and inflation, respectively?

• A) the market power of unions; government spending
• B) efficiency wages; the money supply growth rate
• C) the rate of growth of the money supply; the market power of unions
• D) the minimum wage; the extent to which firms are competitive

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Definitions:

Classical Conditioning

A training method where two stimuli are consistently linked together; initially, the response is triggered by the second stimulus but over time, the first stimulus alone can provoke the same response.

Stimulus-Response Psychology

A branch of psychology focusing on how organisms respond to stimuli in their environment.

Reflexology

An alternative medicine practice involving the application of pressure to specific points on the feet, hands, or ears, with the belief that this will have a beneficial effect on other parts of the body and improve general health.

Structuralism

Structuralism is an approach in psychology that seeks to understand the structure of the mind by breaking down mental processes into their simplest components.