If Wages Adjust Fully to Price Increases in the Long

question 71

Multiple Choice

If wages adjust fully to price increases in the long run, the full effect of fiscal policy is on

• A) output.
• B) the price level.
• C) both output and the price level.
• D) neither output nor the price level.

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Definitions:

Proved Reserves

Quantities of natural resources, such as oil or natural gas, that geological and engineering data demonstrate with reasonable certainty to be recoverable under existing economic and operating conditions.

Titanium

A strong, lightweight, corrosion-resistant metal with significant usage in aerospace, medical devices, and consumer products.

Market Price

The ongoing price for buying or selling a service or asset at the moment.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials that can be refined to produce usable products such as gasoline.