Economists

question 82

Multiple Choice

Economists

• A)agree that the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high.
• B)agree that the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high.
• C)disagree about whether the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high.
• D)disagree about whether the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high.

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Definitions:

Commitment

A pledge or promise to do something; the state of being dedicated to a cause, activity, or goal.

Compliance

Partial success of an influence attempt by a leader: The person makes a modest effort.

Resistance

The state that occurs when an influence attempt by a leader is unsuccessful: The target is opposed to carrying out the request and finds ways to either not comply or do a poor job.

Good-natured Kidding

Light-hearted teasing or joking among individuals in a friendly and well-intentioned manner.