Suppose Most Economists Agree That the Target Rate of Unemployment

question 119

Multiple Choice

Suppose most economists agree that the target rate of unemployment is between 4 and 7 percent. If the actual unemployment rate is 11 percent, then most economists would agree that:

• A)both expansionary and contractionary policies are appropriate.
• B)expansionary monetary and fiscal policies are appropriate.
• C)contractionary monetary and fiscal policies are appropriate.
• D)neither expansionary nor contractionary policies are appropriate.

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Definitions:

Social Norms

Social norms are the accepted behaviors, values, and conventions that govern the behavior of individuals within a group or society.

Past Experience

Previous events or knowledge gained through earlier involvement in similar or related activities, influencing one's current behavior and decisions.

Emotional Signals

Expressions or manifestations of one's feelings that communicate emotional states to others, often non-verbally.

Expectancy Theory

A motivational theory that suggests an individual's motivation is related to their expectation of achieving desirable outcomes as a result of their efforts and the value they place on those outcomes.