If public opinion surveys show that the majority of Americans regard inflation as a more serious threat than unemployment:
a) Does this imply that the majority of Americans would rather be unemployed in a period of stable prices than employed in a time of rising prices?
b) If the management of a firm allowed employees to vote on whether the firm should lay off 10% of the employees or reduce wage rates by 5%, how do you think they would vote? Do you think the outcome of the vote would depend on whether the employees knew in advance exactly who would be laid off?