In the Case of Demand-Pull Inflation, Other Things Being Equal

question 110

Multiple Choice

In the case of demand-pull inflation, other things being equal:

• A) both the inflation rate and the unemployment rate rise at the same time.
• B) the unemployment rate rises but the inflation rate falls.
• C) the inflation rate rises but the unemployment rate falls.
• D) both the inflation rate and the unemployment rate fall.

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Classical Conditioning

A process of education where two stimuli are persistently paired together; a reaction initially brought about by the second stimulus is eventually brought about by the first stimulus alone.

Tone

In psychology, often refers to the general attitude or underlying emotional quality of a communication or environment.

Stimulus Generalization

The tendency for a response that has been conditioned to one stimulus to be elicited by similar, but not identical, stimuli.