A Policy Maker Who Aims at Maintaining Unemployment at 5

question 171

Multiple Choice

A policy maker who aims at maintaining unemployment at 5% while the NAIRU for this economy is 4% will most likely find the economy running into:

• A)deflation.
• B)inflation.
• C)a much higher output level.
• D)a much lower unemployment level.

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Definitions:

Hypoglossal

Relating to the twelfth cranial nerve, which controls the muscles of the tongue, essential for swallowing and speech.

Emotional Pain

A deeply unpleasant emotional response resulting from significant loss, social rejection, or emotional neglect.

Somatosensory Cortex

A region of the brain that processes sensory information from various parts of the body, including touch, pain, and temperature.

Vomeronasal Organ

An auxiliary olfactory sense organ that is found in many animals and is believed to be involved in detecting pheromones.