If People Eventually Adjust Their Inflation Expectations So That in the Long

question 36

Multiple Choice

If people eventually adjust their inflation expectations so that in the long run actual and expected inflation are the same,then policymakers

• A)can not exploit a tradeoff between inflation and unemployment in either the short or long run.
• B)can exploit a tradeoff between inflation and unemployment in the short run but not in the long run.
• C)can exploit a tradeoff between inflation and unemployment in both the short run and the long run.
• D)can exploit a tradeoff between inflation and unemployment in the long run,but not the short run.

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Definitions:

Functionalism

A perspective in sociology and anthropology that views society as a complex system whose parts work together to promote solidarity and stability.

Sources of Bias

Factors and influences that lead to a deviation from neutrality in judgment or representation, affecting the objectivity of conclusions or perceptions.

Aggregate

A collection or sum of individuals, items, or data points brought together for analytical or statistical purposes.

Broadway show

A live theatrical performance, typically a musical or play, presented in one of the professional theaters located in the Broadway district of New York City.