If Workers Fail to Believe That Rising Inflation Will Eventually

question 85

Multiple Choice

If workers fail to believe that rising inflation will eventually result in comparable increases in wages, but firms do understand this, then there is a:

• A)negative relationship between unemployment and inflation in the short run.
• B)positive relationship between unemployment and inflation in the short run.
• C)negative relationship between unemployment and inflation in the long run.
• D)positive relationship between unemployment and inflation in the long run.

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Definitions:

Electromyogram

An electromyogram (EMG) is a diagnostic test that measures the electrical activity generated by muscles in order to assess their health and function.

Pacemaker Cells

Specialized heart cells that control the heart's rate by generating and conducting electrical signals.

Left Atrium

One of the four chambers of the heart, receiving oxygen-rich blood from the lungs and pumping it into the left ventricle.

Right Atrium

The right atrium is a chamber in the heart that receives deoxygenated blood from the body through the vena cava and pumps it into the right ventricle.