In the Long Run

question 126

Multiple Choice

In the long run,

• A)attempts to "fine-tune" the economy cause the rate of unemployment to accelerate.
• B)there is no inflation-unemployment trade-off.
• C)there is an inflation-unemployment trade-off, and the terms of that trade-off have worsened in recent years.
• D)there is an inflation-unemployment trade-off, but the terms of that trade-off have improved in recent years.

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Definitions:

Affordable Housing

Housing units that are reasonably priced and affordable to those with a median household income.

Price Ceiling

A legally imposed maximum price on a good or service, above which it cannot be sold.

Rent Control

Government-imposed limits on the amount landlords can charge for renting out housing or apartments, intended to keep housing affordable.

Price Floor

A government-imposed limit on how low a price can be charged for a product, meant to ensure fair compensation for producers.