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:

Performance Targets

Specific objectives set to measure and evaluate the efficiency, effectiveness, and productivity of an operation, project, or individual.

Call Centre

A centralized office used for receiving or transmitting a large volume of requests by telephone, often for customer service purposes.

Reward System

A structured scheme for the distribution of benefits or incentives to employees or participants, based on their performance and achievements.

Profit Sharing

A company policy of distributing a portion of its profits to its employees.