The mainstream view among economists is that a. no tradeoff exists between unemployment and inflation, either in the short run or in the long run. b. society faces a tradeoff between unemployment and inflation, but only in the short run. c. society faces a tradeoff between unemployment and inflation, both in the short run and in the long run. d. society faces a tradeoff between unemployment and inflation, but only in the long run.

Question

Business

Chloe Weiss

18 July, 15:30

The mainstream view among economists is that a. no tradeoff exists between unemployment and inflation, either in the short run or in the long run. b. society faces a tradeoff between unemployment and inflation, but only in the short run. c. society faces a tradeoff between unemployment and inflation, both in the short run and in the long run. d. society faces a tradeoff between unemployment and inflation, but only in the long run.

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Janiya Ferguson · Answer 1

b. society faces a tradeoff between unemployment and inflation, but only in the short run

Explanation:

Mainstream economics follows rational choice theory, which assumes that individuals make decisions that will maximize their own utility, and uses statistics and mathematical models to demonstrate theories and evaluate various economic developments.