If Policy Makers Expand Aggregate Demand, They Can Lower Unemployment

question 81

Multiple Choice

If policy makers expand aggregate demand, they can lower unemployment ____, but only by ____.

• A)​temporarily; decreasing inflation
• B)​temporarily; increasing inflation
• C)​permanently; decreasing inflation
• D)​permanently; increasing inflation

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Definitions:

Self-esteem

An individual's subjective evaluation of their own worth or personal value.

Spotlight Effect

The inclination to believe that others notice our behavior and looks more than they actually do.

Reciprocal Determinism

A theory in psychology that suggests that a person's behavior both influences and is influenced by personal factors and the social environment.

Narcissism

A personality trait characterized by an inflated sense of one's importance, a deep need for excessive attention and admiration, and a lack of empathy for others.