Which of the Following Would Tend to Shorten Recessions Associated

question 12

Multiple Choice

Which of the following would tend to shorten recessions associated with the use of anti-inflation policies?

• A) People adjust their expectations of inflation slowly.
• B) People believe policy announcements made by economic policy makers.
• C) The short-run Phillips curve does not shift immediately.
• D) All of the above are correct.

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Definitions:

Spendthrift Trust

A trust designed to provide financial support to a beneficiary while protecting the trust assets from the beneficiary's creditors or from being spent recklessly by the beneficiary.

Creditors

Individuals or entities to whom money is owed by a debtor or the company.

Interested

Refers to having a stake or concern in an outcome or matter due to potential personal gain, loss, or impact.

Disinherited

The act of deliberately removing or excluding a lawful beneficiary from receiving any part of an estate or inheritance in a will.