Assume That a Tradeoff Exists in the Short Run Between

question 93

Multiple Choice

Assume that a tradeoff exists in the short run between inflation and unemployment.This relationship means that:

• A)a low rate of unemployment causes a low rate of inflation.
• B)the unemployment rate always equals the inflation rate.
• C)less unemployment can be achieved with more inflation.
• D)less unemployment can be achieved with less inflation.

---

Definitions:

Seasonal Unemployment

Unemployment caused by seasonal changes in the demand for certain kinds of labor.

Official Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, as calculated by government statistics.

Christmas Season

The period leading up to and including Christmas Day, often associated with increased retail activity and festive celebrations.

High Unemployment Rates

A situation where a significant portion of the workforce is without jobs, typically indicating economic distress.