A Good Reason for Policy Makers to Pursue a Goal

question 15

Multiple Choice

A good reason for policy makers to pursue a goal of stabilizing economic activity is that ________.

• A)high inflation is always accompanied by high variability of inflation
• B)high unemployment causes human misery and lost output
• C)in a stable economy,there is little or no structural inflation
• D)all of the above
• E)none of the above

---

Definitions:

American Flag

The national flag of the United States, consisting of thirteen horizontal stripes and fifty stars representing the states.

Effortful Processing

The active and conscious effort to encode or process information into the memory.

Working Memory

An intellectual mechanism of finite capability designed to briefly maintain information for further processing.

Iconic Memory

A form of sensory memory that temporarily stores visual information and has a very brief retention period.