The Argument That When Policy Changes,people's Behaviour Changes So That

question 80

Multiple Choice

The argument that when policy changes,people's behaviour changes so that historical relationships between macroeconomic variables will no longer hold is known as

• A)the Phillips curve.
• B)the policy irrelevance hypothesis.
• C)hysteresis.
• D)the Lucas critique.

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Definitions:

Maslow's

Refers to Maslow's hierarchy of needs, a psychological theory that prioritizes human needs from the most basic physiological necessities to the need for self-actualization.

Humanistic Theorists

Psychologists who emphasize the study of the whole person and believe that individuals have free will and a natural desire towards self-improvement and deeper understanding of themselves.

Individual Selfishness

The tendency for individuals to prioritize their own interests over the welfare of others.

Self-indulgence

The act of allowing oneself to enjoy the pleasure of consuming goods, services, or experiences to an excessive or unwarranted degree.