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.

---

Definitions:

Withdraw Acceptance

The act of revoking acceptance of a contract or offer before it is fully executed, often under specific conditions or due to misrepresentation.

Reasonable Commercial Standards

A set of practices that are considered acceptable and customary in a particular industry or line of business.

Fair Dealing

A principle requiring parties, especially in financial transactions or fiduciary relationships, to act in an honest and open manner without taking unfair advantage.

Substantially Impair

To significantly diminish or weaken the value, function, or condition of something.