From 1994 to 1999, Inflation in the United States Was

question 145

Multiple Choice

From 1994 to 1999, inflation in the United States was relatively constant at approximately 2.5 percent. When inflation is constant for an extended period, which of the following is most likely?

• A) People will correctly anticipate the actual inflation rate, and the actual rate of unemployment will approach the natural rate of unemployment.
• B) People will correctly anticipate the actual inflation rate, and the actual rate of unemployment will exceed the natural rate of unemployment.
• C) The actual inflation rate will be greater than the anticipated rate, leading to an actual rate of unemployment that exceeds the natural rate of unemployment.
• D) Actual inflation will be less than the anticipated rate, leading to an actual rate of unemployment that exceeds the natural rate of unemployment.

---

Definitions:

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Histamines

Compounds involved in local immune responses as well as regulating physiological function in the gut and acting as neurotransmitters.

Receptor Sites

Specific regions on the surface of a cell or within a cell to which specific molecules, such as hormones or neurotransmitters, can bind.

Morphine

A potent opiate analgesic drug derived from opium used to relieve severe pain.