An Inflationary Output Gap Would Generate Which of the Following

question 132

Multiple Choice

An inflationary output gap would generate which of the following conditions in the economy?

• A)Firms are making low profits.
• B)Workers have relatively more bargaining power with employers.
• C)There is an unusually small demand for labour.
• D)There is downward pressure on wages.
• E)There is much idle capacity.

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Definitions:

Oneida

A Native American tribe originally from the area of upstate New York, known for its unique social practices and as a member of the Iroquois Confederacy.

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The condition of refraining from both marriage and sexual activities, frequently due to religious or spiritual motivations.

Abolitionists

Individuals who advocated for and worked towards the end of slavery.

American Revolution

A period of political and military conflict (1775-1783) wherein thirteen of Britain’s North American colonies successfully established independence.