If Policymakers Use Contractionary Policy to Reduce Inflation, the Unemployment

question 52

Multiple Choice

If policymakers use contractionary policy to reduce inflation, the unemployment rate will be

• A) higher.
• B) below its natural rate.
• C) above its natural rate.
• D) at its natural rate.

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Definitions:

Lever

A simple machine consisting of a beam or rigid rod pivoted at a fixed hinge or fulcrum, used to transmit or apply force.

Negative Reinforcement

A process in behavior modification where a response increases because a negative (aversive) condition is removed or avoided.

Positive Reinforcement

A technique in behavior therapy that involves rewarding desirable behaviors to increase the likelihood they will recur.

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