An Economy Adjusts on Its Own to Close an Inflationary

question 85

Multiple Choice

An economy adjusts on its own to close an inflationary gap because there is

• A) pressure on nominal wages to fall and this shifts the SRAS curve rightward.
• B) pressure on nominal wages to rise and this shifts the SRAS curve rightward.
• C) pressure on nominal wages to fall and this shifts the SRAS curve leftward.
• D) pressure on nominal wages to rise and this shifts the SRAS curve leftward.

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Definitions:

Health Care Quality Improvement Act

A federal statute enacted to improve the quality of medical care, largely by restricting the ability of physicians with a history of malpractice from moving to another state to escape their history.

Ordinary Care

The reasonable level of care, diligence, and judgment that a person in a particular profession is expected to exercise under specific circumstances.

Internal-Unstable

Attributes in attributing causation for an event or behavior to factors inside a person that can change, such as effort or mood.

External-Stable

An attributional pattern where success or failure is attributed to enduring factors outside an individual's control.