A Common Explanation for the Behavior of the Short-Run U

question 126

Multiple Choice

A common explanation for the behavior of the short-run U.S. Phillips curve in 2009 and 2010 is that, over the previous 20 or so years, the Federal Reserve had

• A)established a lot of credibility in its commitment to keep inflation at about 2 percent.
• B)established a lot of credibility in its commitment to keep inflation at about 5 percent.
• C)failed to establish significant credibility in its announced intent to keep inflation at about 2 percent.
• D)failed to establish significant credibility in its announced intent to keep inflation at about 5 percent.

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Definitions:

Prevalence

The total number of cases of a disease in a given population at a specific time.

Cross-Sectional Studies

Observational studies that analyze data from a population, or a representative subset, at a specific point in time.

Clinical Phase

A stage in the research and development process of new medical treatments that involves testing on human subjects to evaluate efficacy and safety.

Natural History

The course a disease takes in the absence of intervention, from its onset through its eventual resolution or progression to death.