Price Level Stability

question 104

Multiple Choice

Price level stability

• A) was attained by the Fed for the period between 1973 and 1984.
• B) has no relationship to growth in potential GDP.
• C) is thought by most economists to be reached with a measured inflation rate of between 0 and 3 percent a year.
• D) is the most important tool of the Federal Reserve.

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Definitions:

Avoidance

A behavioral or psychological strategy to disengage or prevent encountering distressing situations, thoughts, or feelings.

Lewin

A psychologist known for his contributions to social, organizational, and applied psychology, including the development of field theory.

Approach/Approach Conflict

A decision-making dilemma involving two desirable options, causing psychological stress.

Lewin

Kurt Lewin, a pioneering psychologist known for his work in group dynamics, social change, and field theory.