In Face of a Negative Supply Shock,the Fed May Avoid

question 196

True/False

In face of a negative supply shock,the Fed may avoid a rise in unemployment only if it is willing to increase the rate of inflation.

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Definitions:

Outgroup Homogeneity

The perception that members of an outgroup are more similar to each other than they actually are, or more similar than members of the ingroup.

Uncertainty-Identity Theory

The theory that people join and identify with groups in order to reduce negative feelings of uncertainty about themselves and others.

Entitativity

The degree to which a group is perceived as being a coherent and distinct entity, with members sharing common characteristics or a common fate.

Uncertainty-Identity Theory

A theory suggesting that individuals form or join groups in order to reduce uncertainty about themselves and their place in the world.