If Expectations Are Rational

question 56

Multiple Choice

If expectations are rational,

• A)a predictable change in inflation can make the expected inflation rate deviate from the actual rate.
• B)unemployment can exceed the full-employment rate even in the long run.
• C)the difference between the actual inflation rate and the expected inflation rate must be a purely random number.
• D)the inflation rate cannot be reduced without a period of high unemployment because the Phillips curve is downward sloping.

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Definitions:

Phallic Stage

A phase in Freud's psychosexual development theory, occurring between ages three and six, where the libido's focus is on the genital area.

Oedipus

A concept in psychoanalytic theory referring to a child's unconscious sexual desire for the opposite-sex parent and jealousy toward the same-sex parent.

Carl Rogers

An influential American psychologist who founded the person-centered approach to therapy, emphasizing empathy, unconditional positive regard, and genuineness in the therapeutic relationship.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.