Policy Makers Cannot Achieve Both Price Stability and Economic Activity

question 28

Multiple Choice

Policy makers cannot achieve both price stability and economic activity stability when facing

• A)temporary supply shocks.
• B)permanent supply shocks.
• C)demand shocks.
• D)all of the above.

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Definitions:

Sociobiology

A branch of biology that explains social behavior in all species by considering evolutionary advantages and genetics.

Mores

The essential or characteristic customs and conventions of a community.

Folkways

Informal norms or customs that guide everyday conduct and social interactions within a particular culture or community.

William Sumner

A pioneering American sociologist and economist known for his work on social Darwinism and folkways.