What Is the Lesser of Two Evils - High Unemployment

question 27

Essay

What is the lesser of two evils - high unemployment or high inflation? Do policy makers have to make this choice all the time? If so, what is the correct choice, according to this chapter?

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Definitions:

Incentives

Rewards or stimuli that motivate individuals to perform a certain action or exhibit a desired behavior.

Satisfaction

The fulfillment or gratification of a desire, need, or appetite, or the pleasure derived from this fulfillment.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors; it is what causes us to act.

Emotion

An immediate, specific, negative or positive response to environmental events or internal thoughts.