(Figure: Demand Shock Alpha) the Movement Shown in the Figure

question 90

Multiple Choice

(Figure: Demand Shock Alpha) The movement shown in the figure will only increase the unemployment rate if:

• A) actual inflation is equal to expected inflation.
• B) actual inflation is lower than expected inflation.
• C) actual inflation is higher than expected inflation.
• D) there are no expectations concerning inflation.

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Definitions:

Self-direction

The ability of an individual to set their own goals and to take initiative in planning and executing tasks without external influence.

Strong Need

A compelling or critical requirement for something essential or very important.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Fleeting Inspiration

transient moments of creative or motivational spark that quickly come and go.