When Studying the Short-Run Behavior of the Economy, an Assumption

question 3

Multiple Choice

When studying the short-run behavior of the economy, an assumption of ______ is more plausible, in contrast to studying the long-run equilibrium behavior of an economy, when an assumption of ______ is more plausible.

• A) inflation; unemployment
• B) unemployment; inflation
• C) flexible prices; sticky prices
• D) sticky prices; flexible prices

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Definitions:

Steal

The act of taking someone else's property without permission or legal right.

Superego

In Freudian psychoanalysis, a part of the personality that acts as a moral center, guiding behavior in accordance with learned social norms.

Conscience

Part of The Superego That Produces Guilt, depending on how acceptable behavior is.

Freud's Personality Theory

A theory proposed by Sigmund Freud that suggests personality is formed through conflicts among three fundamental structures of the human mind: the id, ego, and superego.