The Short-Run Phillips Curve Suggests What Policy Making Implications

question 313

Multiple Choice

The short-run Phillips curve suggests what policy making implications?

• A) Active policy making does not yield any predictable results.
• B) Passive policy making is more effective than active policy making.
• C) Using discretionary policies, it may be possible to achieve just the right unemployment and inflation mix.
• D) Maintaining both the inflation and unemployment rates at low levels is possible if policy makers will rely solely on nondiscretionary policy making.

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Definitions:

Traits

Characteristics or attributes of an individual, which can be physical, psychological, or behavioral, often considered stable and distinguishing.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often leading to prejudice and discrimination against others.

Cultural Confrontation

A situation where cultures or cultural practices come into conflict or disagreement.

Sanctions

Sanctions are rewards and punishments intended to ensure conformity to cultural guidelines.