Suppose That an Economy Were Based in Part on a Phillips

question 8

Multiple Choice

Suppose that an economy were based in part on a Phillips curve relationship that did not include an expectations term. Suppose that the unemployment rate in 1993 were to fall 1 point below the natural rate before returning to the natural rate for the rest of the decade. If the coefficient relating the percentage GDP gap and inflation were 0.4, then you would predict

• A) a perpetual increase in the rate of inflation equal to 1.2 points.
• B) a one-shot increase in the rate of inflation for the year 1993 equal to 1.2 points.
• C) a perpetual increase in the rate of inflation equal to 0.4 point.
• D) a one-shot increase in the rate of inflation for the year 1993 equal to 0.4 point.
• E) none of the above.

---

Definitions:

Bootleg Reinforcers

Unplanned or unauthorized rewards that can maintain or increase an undesired behavior, often complicating behavior modification efforts.

Self-Reinforcement

A phase of self-management and an intervention technique. The process involves teaching students to either provide themselves with a tangible reinforcer after completing a desired behavior or engage in positive self-statements. Self-evaluation and self-monitoring are necessary prerequisites.

Self-Monitoring

A technique in which individuals observe and record their own behaviors as a way to increase awareness and facilitate behavior change.

Self-Management

The ability to regulate one’s own emotions, behaviors, and thoughts to achieve personal goals or adhere to societal norms.