If Government Uses Its Stabilization Policies to Maintain Full Employment

question 58

Multiple Choice

If government uses its stabilization policies to maintain full employment under conditions of cost-push inflation,

• A)a deflationary spiral is likely to occur.
• B)an inflationary spiral is likely to occur.
• C)stagflation is likely to occur.
• D)the Phillips Curve is likely to shift inward.

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Definitions:

Summons

A legal document issued by a court and addressed to a defendant that notifies him or her of the lawsuit and how and when to respond to the complaint. A summons may be used in both civil and criminal proceedings.

Complaint

A formal written document that begins a civil lawsuit; contains the plaintiff’s list of allegations against the defendant along with the damages the plaintiff seeks.

Defendant

An entity, whether a person, corporation, or institution, facing legal action in a court.

Plaintiff

The party who initiates a lawsuit by filing a complaint with the court against the defendant, seeking legal remedy for an alleged grievance.