Economists Agree That at Least in the Short Run Disinflation

question 5

Multiple Choice

Economists agree that at least in the short run disinflation

• A)leads to a period of higher unemployment. They also agree that the costs of even moderate inflation is high.
• B)leads to a period of higher unemployment. They disagree about the cost of moderate inflation.
• C)leads to a period of lower unemployment. They also agree that the cost of even moderate inflation is high.
• D)leads to a period of lower unemployment. They disagree about the cost of moderate inflation.

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Definitions:

Positive Externalities

External benefits.

Common Resource

A type of good that is non-excludable but rivalrous, meaning it is available to everyone but its consumption by one person can limit availability to others.

Property Rights

Legal rights to possess, use, and dispose of assets.

Political Engagement

The active participation of individuals in political activities or processes to influence public policy or decision-making.