According to Reasoning by Milton Friedman and Edmund Phelps

question 91

Multiple Choice

According to reasoning by Milton Friedman and Edmund Phelps:

• A) economic stimulus programs were destined to fail in the long run.
• B) economic stimulus programs were destined to fail in the short and long runs.
• C) unemployment does not react to fluctuations in output.
• D) there is a theoretical maximum level of potential output that can be produced.
• E) firms do not react to real interest rate changes.

---

Definitions:

External Factors

Influences that originate outside an individual or system, affecting their behavior and outcomes.

Social Roles

The parts individuals play as members of a social group, which meet the expectations of society.

Better Adjusted

Describes individuals who are more effectively adapted to their social, emotional, or psychological environment.

Self-Esteem

An individual's subjective evaluation of their own worth and capabilities.