If Labor Costs Rise at the Same Time That the Federal

question 91

Multiple Choice

If labor costs rise at the same time that the federal government decreases its spending, in the short run

• A)aggregate output and the price level will both increase.
• B)aggregate output will increase, but the price level will fall.
• C)aggregate output and the price level will both fall.
• D)aggregate output will fall, but the price level may either increase or decrease.

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Definitions:

Teeth

Hard, calcified structures in the mouths of many animals, including humans, used for biting and chewing food.

Pastoralist

People or cultures that rely on domesticated animal herding as their primary source of livelihood.

Agricultural

Pertaining to farming or the cultivation of plants and the rearing of animals to provide food, fiber, and other products.

Horticulturalist

An individual or community that practices horticulture, the art or practice of garden cultivation and management.