According to Friedman and Phelps, When Is the Unemployment Rate

question 159

Multiple Choice

According to Friedman and Phelps, when is the unemployment rate above the natural rate?

• A) when actual inflation is greater than expected inflation
• B) when actual inflation is less than expected inflation
• C) when actual inflation equals expected inflation
• D) when actual inflation is high

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Definitions:

Disinhibition

The reduction of restraint or inhibition in social situations, often facilitated by anonymity or group dynamics.

Online Groups

Communities or collections of individuals who interact through digital platforms, sharing interests, goals, or purposes via the internet.

Norms

Shared expectations and rules that guide behavior within a group or society, often unspoken and learned through social interaction.

Reactance Theory

Suggests that individuals may react against threats to their freedom of choice by doing the opposite of what they are being pushed towards, to reassert their autonomy.