If Unemployment and Inflation Always Move in the Same Direction

question 217

Multiple Choice

If unemployment and inflation always move in the same direction, then we can infer that business fluctuations are

• A)from the demand side.
• B)from the supply side.
• C)from both the demand and supply side.
• D)purely random events.

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Definitions:

Hypothesis Testing

A method in statistics used to determine whether there is enough evidence in a sample of data to infer that a certain condition holds for the entire population.

Template Matching

A process in cognitive psychology where a perceived item or stimulus is compared to stored templates or patterns in the mind to recognize and identify it.

Personal Construct Theory

A psychological theory proposing that individuals organize their experiences into a system of personal constructs, which are used to interpret and predict events.

Constructs

Constructs are abstract concepts developed for use in a particular scientific or philosophical context to understand and describe the phenomena of interest.