Which of the Following Is Likely the Most Significant Implication

question 57

Multiple Choice

Which of the following is likely the most significant implication of the natural rate of unemployment hypothesis?  

• A) The natural rate of inflation tends toward zero. 
• B) Long-run policy should be directed toward controlling inflation rather than unemployment. 
• C) The natural rate of unemployment can be reduced if policymakers accept worsening inflation. 
• D) The natural rate of unemployment is consistent only with a zero inflation rate in the long run.

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Definitions:

Likability

The quality that makes a person pleasant, friendly, and easy to like.

Mere Exposure Effect

The mere exposure effect is a psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

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Businesses that manufacture and market non-alcoholic beverages, especially carbonated drinks.

Elaboration Likelihood Model

A theory that explains how people are persuaded, describing two paths of persuasion: the central route and the peripheral route.