A Policymaker Wants to Reduce Inflation

question 10

Multiple Choice

A policymaker wants to reduce inflation. In order to make an intelligent decision about how to do so, the policymaker:

• A) should use a simple rule: once inflation is gone, it will always be gone.
• B) needs to know the causes of inflation, for example, the government's printing of too much money.
• C) should find out if people are really better off as a result of the inflation.
• D) should realize that inflation can be reduced without any costs.

---

Definitions:

Psychological Product

An outcome or result of a psychological process, theory, or intervention.

Mind

The aspect of intellect and consciousness experienced as combinations of thought, perception, memory, emotion, will, and imagination, including all unconscious cognitive processes.

Brain

The organ located in the skull of vertebrates that is the center of the nervous system, responsible for perception, cognition, attention, emotion, and action.

Superego

The superego is a component of the mind in psychoanalytic theory, acting as the ethical or moral self, which judges the actions performed by the ego against internalized societal and parental standards.