In the Last Half of the 1990s, the Usual Short-Run

question 31

Multiple Choice

In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because

• A)the Fed held interest rates constant.
• B)the federal government balanced its budget.
• C)the U.S.personal savings rate rose.
• D)productivity (and thus aggregate supply) grew faster than previously.

---

Definitions:

Virtual Community

An association of people, scattered across the country, continent, or planet, who communicate via computer and modem about a subject of common interest.

Flexible Self

The ability of an individual to adapt their identity and personal narratives to cope with various social situations and challenges.

Cultural Relativism

Is the belief that all cultures have equal value.

Ethnocentrism

The tendency to judge other cultures exclusively by the standards of one’s own.