Suppose Each of the Following Rows Represents the Choice Faced

question 87

Multiple Choice

Suppose each of the following rows represents the choice faced by policy makers given the current set of U.S. institutions and technology. What is the opportunity cost of reducing unemployment from 8 percent to 4 percent? $\begin{array}{|c|c|} \hline \text { Unemployment}&\text {Inflation}\\\hline 10 & 3 \\\hline 8 & 4 \\\hline 6 & 5 \\\hline 5 & 7 \\\hline 4 & 10 \\\hline\end{array}$

• A) 4 percentage points of unemployment
• B) 6 percentage points of unemployment
• C) 6 percentage points of inflation
• D) 4 percentage points of inflation

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Definitions:

Hard-headed

Unwilling to change or be persuaded; stubborn.

Fighting

The act of engaging in physical conflict or combat between individuals or groups, often used as a means of resolving disputes or aggression.

Physically Aroused

A state of heightened physiological activity, including increased heartbeat, breathing, and sensations, often related to sexual or emotional stimuli.

Positive Feelings

Emotions or sensations that are pleasant, uplifting, or fulfilling, such as happiness, joy, or love.