While Listening to a News Story About the Ongoing Government

question 305

Multiple Choice

While listening to a news story about the ongoing government efforts in the Middle East,Amelia frowned and slumped her shoulders.What emotion was she expressing?

• A) anger
• B) wit
• C) frustration
• D) sadness

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Definitions:

Rational Expectationists

Economic theorists who believe individuals make predictions based on available information and in a way that errors cancel out over time.

Recessionary Gaps

A situation in macroeconomics where the real GDP is lower than the potential GDP, indicating underutilized resources and less-than-full employment in the economy.

Inflationary Gaps

Situations where the demand for goods and services exceeds the production capacity of the economy, leading to an upsurge in price levels.

Classical Economists

A group of economists in the 18th and 19th centuries who believed in free markets, the self-regulating nature of economies, and the importance of competition.