Three-Year-Old Ceres Is Playing with Her Toy Farm

question 97

Multiple Choice

Three-year-old Ceres is playing with her toy farm.She has 15 cows,3 pigs,and 2 horses.When her older brother asks whether there are more cows or more animals,she happily yells out,"more cows!" Ceres has not yet mastered the concept of

• A)classification.
• B)conservation.
• C)representation.
• D)reversibility.

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Definitions:

Inflation Expectations

Inflation Expectations are the rate at which people expect prices to rise in the future, influencing their economic decisions.

Long-Run Phillips

The concept in economics that suggests there is no long-term trade-off between inflation and unemployment, indicating that in the long run, the Phillips curve is vertical.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or commodity, leading to higher prices and lower quantity in the market.

Inflation Expectations

The anticipated rate of inflation in the future, which can influence consumer and business spending and saving decisions.