If the Actual Inflation Rate Exceeds the Expected Inflation Rate

question 68

Multiple Choice

If the actual inflation rate exceeds the expected inflation rate,

• A)the economy is on the long-run Phillips curve
• B)unemployment exceeds the natural rate
• C)maintaining the existing unemployment rate will require increasing inflation in the long run
• D)the actual rate will tend to fall toward the expected rate
• E)unemployment will tend to decrease in the long run

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Definitions:

Higher-order Conditioning

A process in classical conditioning by which a stimulus that's associated with a primary conditioned stimulus also becomes a conditioned stimulus.

Stimulus Discrimination

The ability to differentiate between one stimulus and similar stimuli, ensuring that only the original stimulus triggers the conditioned response in classical conditioning.

Stimulus Discrimination

The ability to differentiate between similar stimuli and respond appropriately to each one.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, begins to evoke a conditioned response.