-An Economy's Natural Unemployment Rate Is 4 Percent

question 50

Multiple Choice

-An economy's natural unemployment rate is 4 percent. The table above gives some points on the economy's short-run Phillips curve. When the unemployment rate is 4 percent

• A) actual inflation is greater than expected inflation.
• B) actual inflation is less than expected inflation.
• C) and the inflation rate is 6 percent a year, the short-run and long-run Phillips curves intersect.
• D) and the expected inflation rate is 8 percent a year, the short-run Phillips curve shifts downward.

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Definitions:

Socialization

The process through which individuals learn and internalize the values, norms, and behaviors that are considered appropriate in their society.

Childhood

The period in a human's life from birth to adolescence, characterized by growth, development, and learning within a familial and societal context.

Adult

A person who has reached maturity or legal age, typically characterized by finished physical growth and the assumption of responsibilities.

Charles Horton Cooley

An American sociologist known for his theory of the "looking-glass self," emphasizing the social nature of self-concept.