When Inflation and Unemployment Are Both Higher Than Desired, Most

question 57

Multiple Choice

When inflation and unemployment are both higher than desired, most economists believe that the government should:

• A)adopt contractionary monetary policies that reduce both inflation and unemployment.
• B)adopt expansionary fiscal policies that reduce both inflation and unemployment.
• C)determine whether reducing inflation is more or less important than reducing unemployment and adopt a policy that targets the more important goal.
• D)not act as it is impossible to reduce either inflation or unemployment under these circumstances.

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Definitions:

Constitutionally

Pertaining to the constitution of a country or organization, especially relating to the legal and framework foundation.

Fourteenth Amendment

An amendment to the U.S. Constitution granting citizenship to all persons born or naturalized in the United States and providing them with equal protection under the law.

Equal Protection

A constitutional principle in the U.S. that requires states to treat all citizens equally under the law, prohibiting discrimination on arbitrary grounds.

Fifth Amendment

An amendment to the US Constitution that provides several rights relevant to both criminal and civil legal proceedings, including protections against self-incrimination and double jeopardy.