In the Short Run, There _____ a Trade-Off Between Inflation

question 46

Multiple Choice

In the short run, there _____ a trade-off between inflation and unemployment, and in the long run, there _____ a trade-off between inflation and unemployment.

• A) is; is
• B) is; is not
• C) is not; is
• D) is not; is not

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Definitions:

Marginal Utility per Dollar

The additional satisfaction or utility gained from consuming one more unit of a good or service, divided by its cost.

Potatoes

Tubers of the plant Solanum tuberosum, widely used as a staple food item, grown in various parts of the world.

Clams

Marine or freshwater mollusks with a bivalve shell, often used as food.

Marginal Utility

The surplus satisfaction or utility experienced by an individual from consuming an extra unit of a particular good or service.