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John and Angel Are Having an Argument Over Future Inflation

question 48

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John and Angel are having an argument over future inflation rates. John thinks the rate will be 3%, because inflation has not exceeded that rate in more than a decade. Angel points out that the chairman of the Federal Reserve testified before Congress last week that she thinks the unemployment rate is too far above its natural rate and thus that the economy should be stimulated. John is using _____ expectations and Angel is relying on _____ expectations.


Definitions:

Psychotherapy

A treatment method for mental health issues that involves talking with a therapist, focusing on understanding and resolving problematic behaviors, beliefs, feelings, relationship issues, and/or somatic responses.

Rats and Pigeons

Commonly used animals in psychological and behavioral research to understand learning, cognition, and behavior patterns.

Think Clearly

The ability to understand, analyze, and communicate information logically and without confusion.

Fear God

A religious or spiritual concept that encompasses respect, awe, and reverence toward a deity.

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