The Main Argument in Favor of the Existence of a Natural

question 30

Multiple Choice

The main argument in favor of the existence of a natural rate of unemployment in the long run focuses on what argument?

• A) Workers will adjust their inflationary expectations in the long run so that unemployment is unrelated to inflation.
• B) Workers refuse to be unemployed in the long run.
• C) Firms need to be at full employment in the long run.
• D) Wages will always adjust to make the long-run unemployment rate zero percent.
• E) The government cannot affect inflation in the long run.

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Definitions:

Standard Deviation

It measures the dispersion or spread of a data set, indicating how much the values in the set deviate from the mean on average.

Postformal Thought

A proposed adult stage of cognitive development, following Piaget’s four stages, that goes beyond adolescent thinking by being more practical, more flexible, and more dialectical (i.e., more capable of combining contradictory elements into a comprehensive whole).

Operational Thought

A stage in Piaget's theory of cognitive development where children develop the ability to think logically about abstract concepts.

Concrete Thought

Thinking that is literal and focused on the physical world, often observed in early cognitive development.