If the Economy Is Experiencing an Inflationary Output Gap,the Adjustment

question 136

Multiple Choice

If the economy is experiencing an inflationary output gap,the adjustment process operates as follows:

• A)Wages do not adjust,but the AD curve shifts to the right.
• B)Wages fall,unit costs fall,and the AD curve shifts rightward.
• C)Wages rise,unit costs rise,and the AS curve shifts leftward.
• D)Wages rise,unit costs rise,and the AS curve shifts rightward.
• E)Wages fall,unit costs fall,and the AS curve shifts rightward.

---

Definitions:

Novelist

An author or writer of novels, which are extended works of fiction.

Physicist

A scientist who specializes in the study of matter, energy, and the interaction between them.

Fluid Abilities

Mental skills that involve the ability to reason quickly and think abstractly, which tend to decline with age.

Expert Problem Solving

The capacity to effectively address and find solutions to complex problems, often developed through extensive experience or knowledge in a specific area.