The Short-Run Phillips Curve Suggests What Policy Making Implications

question 313

Multiple Choice

The short-run Phillips curve suggests what policy making implications?

• A) Active policy making does not yield any predictable results.
• B) Passive policy making is more effective than active policy making.
• C) Using discretionary policies, it may be possible to achieve just the right unemployment and inflation mix.
• D) Maintaining both the inflation and unemployment rates at low levels is possible if policy makers will rely solely on nondiscretionary policy making.

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Definitions:

Semantic Encoding

The process of encoding sensory input that has particular meaning or can be applied to a context, rather than merely being remembered as a visual or auditory stimulus.

Mnemonic

A memory aid, often a word, phrase, or visual image, designed to help remember information or a concept.

Phonemic

Relating to the system of phonemes in a language, that is, the smallest unit of sound that can distinguish meaning.

Structural

Pertaining to the underlying framework or organization of a system.