A Policy Intended to Reduce Unemployment by Taking Advantage of a Tradeoff

question 149

Multiple Choice

A policy intended to reduce unemployment by taking advantage of a tradeoff between inflation and unemployment leads to

• A)both higher inflation and higher unemployment in the long run.
• B)higher inflation and no change in unemployment in the long run.
• C)the same inflation rate and lower unemployment in the long run.
• D)higher inflation and lower unemployment in the long run

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Definitions:

Prognosis

A forecast of the probable course and outcome of a disease or situation.

Diagnosis

The identification of the nature and cause of an illness or problem through examination of the symptoms.

Maladaptive Behaviour

Actions or tendencies that are counterproductive to oneself or to ones' social environment, often impeding functioning or adaptation.

Cognitive Confusion

A state of being perplexed or unclear in one’s thinking, often marked by an inability to grasp concepts or solve problems effectively.