The Hypothesis That Hysteresis May Play an Important Role in Macroeconomics

question 29

Multiple Choice

The hypothesis that hysteresis may play an important role in macroeconomics implies, among other things, that:

• A) the history of economic thought is important to macroeconomics.
• B) workers get hysterical during long depressions.
• C) hysteresis lowers the sacrifice ratio.
• D) the natural rate of unemployment may increase if unemployment is high for a long period of time.

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Definitions:

Delta Sleep

Refers to deep sleep, during which there is no eye movement or muscle activity. This phase is also known as slow-wave sleep.

REM Sleep

A phase of sleep involving rapid eye movements, where dreaming and increased brain activity occur.

Parasomnia

A category of sleep disorders that involve abnormal and unnatural movements, behaviors, emotions, perceptions, and dreams.

REM Sleep

A phase of sleep characterized by rapid eye movements and is the period where most dreams occur.