Figure 1219: Change in Inflation $\Delta$ $\pi$ ): 2007-2012
-Consider Figure 12

question 38

Essay

Figure 12.19: Change in Inflation ( $\Delta$ $\pi$ ): 2007-2012
-Consider Figure 12.19, which shows the change in inflation from 2007.08-2012.05. If you are Ben Bernanke, Fed chairman, during this period, what is your primary concern during the period, roughly, 2008.08-2009.12? What would you do to remedy this situation? What curve are you likely to consider when you make your policy decision?

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Definitions:

Emotion-Focused Coping

A stress management strategy where individuals try to reduce the negative emotional responses associated with stress.

Cortisol Levels

A measure of the concentration of cortisol, a hormone released by the adrenal glands in response to stress.

Blood Pressure

The pressure of circulating blood against the walls of blood vessels, crucial for maintaining life.

External Locus of Control

A psychological concept referring to an individual's belief that external forces, beyond their personal control, significantly influence their life events and outcomes.