Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A)In the short run,unemployment and inflation are positively related.In the long run they are largely unrelated problems.
• B)Inflation and unemployment are positively related in the short run and in the long run.
• C)In the short run,unemployment and inflation are negatively related.In the long run they are largely unrelated problems.
• D)Inflation and unemployment are negatively related in the short run and in the long run.

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Definitions:

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, including both private costs and externalities.

Marginal Social Benefit

The additional benefit that society gains from consuming an additional unit of a good or service.

Government Intervention

Actions taken by a government to affect or interfere with economic activity, often to correct market failures and promote economic welfare.

Pollution

The presence or introduction into the environment of contaminants or substances that cause harm or discomfort to organisms, including humans.