If Policymakers Expand Aggregate Demand, What Happens to Inflation and Unemployment

question 141

Multiple Choice

If policymakers expand aggregate demand, what happens to inflation and unemployment in the long run?

• A) Inflation will be higher and unemployment will be lower.
• B) Inflation will be higher and unemployment will be unchanged.
• C) Inflation and unemployment will be unchanged.
• D) Both inflation and unemployment will be higher.

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Definitions:

Parallel Processing

In cognitive science and computer science, it refers to the ability of the brain or a computer to process multiple tasks simultaneously.

Inattentional Blindness

Inattentional blindness is the psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to focusing attention on another task or aspect.

Dual Processing

The principle that information is often simultaneously processed on separate conscious and unconscious tracks in the human mind.

Synchronized Activity

Involves multiple components or individuals acting in unison and coordination, often seen in systems or group behaviors.