Milton Friedman Argued That the Economy Is Not in Long-Run

question 128

Multiple Choice

Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate.

• A) is less than
• B) is greater than
• C) equals
• D) a and b

Identifying factors that influence creativity and innovative decision-making.

Understanding the concept of escalating commitment and how to avoid its trap.

Recognizing the importance of questioning assumptions to enhance creativity.

Understanding the impact of cognitive errors like framing, confirmation, and representativeness biases on decision-making.

---

Definitions:

Cognitive Therapists

Mental health professionals who help people identify and correct faulty or maladaptive thinking patterns and behaviors through a range of strategies aimed at changing thoughts and actions.

Life Events

Significant experiences or milestones in an individual's life that can have profound psychological and emotional impacts, such as marriage, childbirth, or the death of a loved one.

Systematic Desensitization

A therapeutic intervention used to gradually reduce a person's anxiety towards a particular object or situation by slowly exposing them to the fear in a controlled way.

Physically Relax

The process of reducing tension and stress in the body through techniques such as deep breathing, muscle relaxation, or gentle exercise.