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:

Psychological

Pertaining to the mind or mental processes affecting behaviour, emotions, and thought processes.

Psychotherapy

Any type of approach that uses psychological rather than biological means to treat psychological disorders.

Insight Therapies

Approaches to psychotherapy based on the notion that psychological well-being depends on self-understanding.

Action Therapies

Therapeutic approaches that emphasize direct action and behavioral change rather than introspection or cognitive analysis.