Refer to the Diagram

question 157

Multiple Choice

Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point a, where the expected and actual rates of inflation are each 6
Percent. If the actual rate of inflation unexpectedly falls from 6 percent to 4 percent, then the
Unemployment rate will

• A) temporarily fall from 5 percent to 4 percent.
• B) permanently fall from 5 percent to 4 percent.
• C) temporarily rise from 5 percent to 7 percent.
• D) permanently rise from 5 percent to 7 percent.

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Definitions:

Mutation

A new gene or combination of genes.

Psychological Processes

Encompass the functions of the mind, including cognition, emotion, perception, and behavioral patterns, integral to understanding human behavior.

Nature

The inherent qualities or properties of something; often refers to the physical world and its phenomena not made by human beings.

Culture

An information-based system that includes shared ideas and common ways of doing things.