One Explanation That Economists Offer to Explain Why a Decline

question 21

Multiple Choice

One explanation that economists offer to explain why a decline in the unemployment rate can raise the rate of inflation is that

• A) firms will be put in a position of competing more intensely for scarce resources.
• B) people will pay higher prices because competition among suppliers intensifies.
• C) workers will focus more directly on protecting their jobs.
• D) firms will refuse to shift higher labour costs along to consumers for fear of losing their markets.

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Definitions:

Lichens

Lichens are symbiotic associations between a fungus and a photosynthetic partner, usually algae or cyanobacteria, living together in a mutually beneficial relationship.

Edible Fungi

Organisms from the fungi kingdom that are safe for human consumption.

Ergot

A fungal disease of cereal crops and grasses, producing toxic alkaloids, historically associated with outbreaks of ergotism in humans.

Truffles

A type of highly valued fungus that grows underground, often near the roots of certain trees, prized for their distinctive flavor in culinary uses.