In the Long Run, When the Actual Inflation Rate Gets

question 181

Multiple Choice

In the long run, when the actual inflation rate gets embedded in people's expectation:

• A) the trade-off between inflation and unemployment becomes even stronger.
• B) it is possible to achieve lower unemployment in the long run by accepting higher inflation.
• C) there is no longer a trade-off between inflation and unemployment.
• D) actual inflation at any unemployment rate is always higher than expected inflation.

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Definitions:

Categorical Imperative

A concept developed by philosopher Immanuel Kant, asserting that certain moral principles are universally valid and must be followed in all circumstances.

Kantian Theory

A philosophical doctrine proposing that moral actions are those performed in accordance with moral laws or duties, as espoused by Immanuel Kant.

Utilitarian

Pertaining to the ethical philosophy that proposes actions are right if they are useful or for the benefit of a majority.

Teleological

Relating to teleology, the philosophical study of purpose, design, or end goals in natural occurrences.