Solved

"To Achieve the Nonperfectionist's Goal of High Enough Output to Give

Question 75

Multiple Choice

"To achieve the nonperfectionist's goal of high enough output to give us no more than 3 percent unemployment,the price index might have to rise by as much as 4 or 5 percent per year." This statement made by two Nobel Prize-winning economists is


A) false;if we were willing to accept annual inflation of 5 percent,an unemployment rate of less than 3 percent could be achieved.
B) false;while a reduction in unemployment to 3 percent is attainable,it would require annual inflation of 8 percent to 10 percent to be sustained in the long run.
C) false;the statement fails to recognize that inflation does not stimulate output and employment when it is widely anticipated.
D) essentially true.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents