When Inflation and Unemployment Are Both Higher Than Desired, Most

question 57

Multiple Choice

When inflation and unemployment are both higher than desired, most economists believe that the government should:

• A)adopt contractionary monetary policies that reduce both inflation and unemployment.
• B)adopt expansionary fiscal policies that reduce both inflation and unemployment.
• C)determine whether reducing inflation is more or less important than reducing unemployment and adopt a policy that targets the more important goal.
• D)not act as it is impossible to reduce either inflation or unemployment under these circumstances.

Understand the legal and ethical considerations in business communications, especially when responding to claims and criticisms online.

Recognize the role of mood (imperative, indicative) in conveying the tone in business writing and how it affects reader perception.

Understand the significance of timing and mood in responding to customer communications and the impact on customer satisfaction and retention.

Grasp the importance of personalizing messages and including specific details to enhance the effectiveness of goodwill messages.

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Definitions:

Indicator

A measurement or signal that can be used to gauge certain financial conditions or market trends.

Put/Call Ratio

A technical indicator that measures the number of put options being traded relative to call options, often used to gauge market sentiment or investors' expectations about market direction.

Indicator

A statistic or metric used to gauge future trends in financial markets, economies or other financial entities.

Short Interest

A financial metric indicating the quantity of a company's shares that are currently sold short and have not yet been covered or closed out.