The Economy Will Move to a Point on the Short-Run

question 52

Multiple Choice

The economy will move to a point on the short-run Phillips curve where unemployment is higher if

• A)the inflation rate decreases.
• B)the government increases its expenditures.
• C)the Fed increases the money supply.
• D)None of the above is correct.

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Definitions:

Permissible

That which is allowed or authorized by law, ethics, or some other governing body.

Hedonistic Utilitarian

A branch of utilitarian ethics focused on maximizing pleasure and minimizing pain as the criteria for determining the moral rightness of actions.

Satisfaction of Preferences

The achievement of a state where one's desires or preferences are fulfilled or met.

Paternalists

Individuals or entities that exercise authority by making decisions for others, purportedly in their best interests, often without their consent or against their wishes.