Which of the Following Claims Is Consistent with the Views

question 18

Multiple Choice

Which of the following claims is consistent with the views of mainstream economists?

• A)If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will temporarily fall.
• B)If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will temporarily rise.
• C)If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will permanently fall.
• D)If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will permanently rise.

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Definitions:

Function

A mathematical relation in which each element of a domain is associated with exactly one element of a range.

Production Function

An equation or graph that represents the maximum output that can be produced with a given set of inputs, showing the relationship between input and output levels in the production process.

Factors Of Production

The inputs used in the production of goods or services in the attempt to make an economic profit, including land, labor, capital, and entrepreneurship.

Input

Resources used in the production process, including labor, capital, materials, and energy.