"To Achieve the Nonperfectionist's Goal of High Enough Output to Give

question 117

Multiple Choice

"To achieve the nonperfectionist's goal of high enough output to give us no more than 3 percent unemployment,the price index might have to rise by as much as 4 or 5 percent per year." This statement made by two Nobel Prize-winning economists is

• A)false;if we were willing to accept annual inflation of 5 percent,an unemployment rate of less than 3 percent could be achieved.
• B)false;while a reduction in unemployment to 3 percent is attainable,it would require annual inflation of 8 percent to 10 percent to be sustained in the long run.
• C)false;the statement fails to recognize that inflation does not stimulate output and employment when it is widely anticipated.
• D)essentially true.

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Definitions:

Long-term Memory

The phase of the memory process that is capable of storing information for long periods of time, even permanently.

Maintenance Rehearsal

A method of keeping information in short-term memory by mentally repeating it.

Episodic Memories

Episodic memories are a type of long-term memory that involve the recollection of specific events, situations, and experiences, including the context and emotions associated with them.

Semantic Memories

Memories of general knowledge and facts about the world, independent of personal experience.