A Vocal Minority of Economists, Believers in the Theory of Rational

question 160

Multiple Choice

A vocal minority of economists, believers in the theory of rational expectations, insist that

• A)the Phillips curve is downward sloping even in the short run.
• B)the Phillips curve is vertical even in the short run.
• C)a trade-off exists between inflation and unemployment even in the long run.
• D)expansionary fiscal and monetary policy can reduce unemployment without creating inflation.

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Definitions:

Condiments

Substances such as salt, mustard, or pickles that are used to add flavor to food.

Maternal Employment

The participation of mothers in the workforce and its effects on family life, child development, and other aspects.

Vocabulary Scores

Numerical assessments that reflect an individual's knowledge and command of a language's words and meanings.

Motor Skill Development

The progress of muscle coordination, strength, and movements that enable an individual to perform complex physical tasks.