Suppose a Policy Affects the Natural Rate of Unemployment

question 68

Multiple Choice

Suppose a policy affects the natural rate of unemployment. Which of the following does such a policy change?

• A)neither the long-run Phillips curve nor the long-run aggregate supply curve
• B)both the long-run Phillips curve and the long-run aggregate supply curve
• C)the long-run Phillips curve, but not the long-run aggregate supply curve
• D)the long-run aggregate supply curve, but not the long-run Phillips curve

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Definitions:

Faulty Cognitions

Faulty Cognitions are distorted or irrational thoughts that can lead to erroneous beliefs and negative behavior patterns.

Irrational Beliefs

Thoughts that are not based on reality or logical reasoning, often leading to negative emotions.

Ellis

Referring to Albert Ellis, a psychologist known for developing Rational Emotive Behavior Therapy (REBT), which focuses on identifying irrational beliefs to change emotional and behavioral responses.

Socratic Method

A form of cooperative argumentative dialogue between individuals, based on asking and answering questions to stimulate critical thinking and to draw out ideas and underlying presuppositions.