The Inflation Rate Has Been Constant for Several Years at 4

question 286

Multiple Choice

The inflation rate has been constant for several years at 4 percent, and the unemployment rate has been stable at 6 percent over the same time period. Changes in government policy that cause the inflation rate to rise to 6 percent will

• A) have no effect on the unemployment rate.
• B) cause the unemployment rate to fall in the short run.
• C) cause the unemployment rate to rise to 9 percent in the short run.
• D) cause the unemployment rate to rise in the short run, but we cannot tell by how much.

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Definitions:

Popularity

The quality or state of being widely admired, liked, or supported by many people.

Social Conventions

Agreed-upon norms and practices within a society that govern behavior and expectations in social situations.

Moral Dilemmas

Situations in which a decision must be made between two or more morally conflicting options.

Moral Reasoning

The process through which individuals make decisions about what is right and wrong based on ethical principles.