For a Number of Years Country a Had Inflation of 3

question 69

Multiple Choice

For a number of years country A had inflation of 3% but for the last five years has had inflation of 6%.Country B had inflation of 4% for many years,but very recently inflation unexpectedly rose to 9%.Other things the same,in which of the countries would the higher inflation rate be more likely to reduce unemployment?

• A)both country A and country B
• B)neither country A nor country B
• C)country A but not country B
• D)country B but not country A

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Definitions:

Longitudinal Evidence

Data gathered from the same subjects repeatedly over a period of time to observe changes and developments, providing insight into effects and patterns that emerge over the long term.

Pessimist

An individual who tends to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Thwarted Need

A desire or requirement that has been prevented from being achieved or satisfied.

Power Motive

Wanting to have an impact on others.