Suppose an Economy That Has Been Operating at Full Employment

question 11

Multiple Choice

Suppose an economy that has been operating at full employment has been experiencing 4 percent annual inflation. If output later exceeds potential output, prices generally will begin to rise at

• A) a rate of 4 percent.
• B) a rate greater than 4 percent.
• C) a rate less than 4 percent.
• D) a rate of 0 percent.

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Definitions:

Frame Alignment Theory

A sociological theory that explains the process by which individuals with similar values and beliefs align their activities and movements, often in the context of social movements.

Strain Theory

A sociological theory that posits individuals may resort to criminality due to pressures or strains from societal expectations and the inability to achieve them through legitimate means.

Gustave Le Bon

A French social psychologist renowned for his work on crowd psychology, highlighting how an individual's behavior in a crowd differs from their behavior alone.

Émile Durkheim

A pioneering French sociologist known for his foundational contributions to sociology, including his studies on social cohesion and the role of religion in society.