If Government Uses Its Stabilization Policies to Maintain Full Employment

question 58

Multiple Choice

If government uses its stabilization policies to maintain full employment under conditions of cost-push inflation,

• A)a deflationary spiral is likely to occur.
• B)an inflationary spiral is likely to occur.
• C)stagflation is likely to occur.
• D)the Phillips Curve is likely to shift inward.

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Definitions:

Stimulus Characteristics

The specific attributes or features of a stimulus that can affect how it is perceived and processed by an individual.

Intense Stimuli

Stimuli that are particularly strong or powerful, often eliciting a significant response from an organism.

Weaker Stimuli

Stimuli that have less intensity or strength, potentially producing less pronounced responses in perceptual or physiological processes.

Habituation

A decrease in response to a stimulus after being repeatedly exposed to it, showing a form of non-associative learning.