The Short-Run Fluctuations in Output and Unemployment That We See

question 3

Multiple Choice

The short-run fluctuations in output and unemployment that we see in the real world are the result of:

• A)shocks and events that are going according to the plans.
• B)shocks and events that are not going according to the plans.
• C)the actual demand to be exactly what the firms were expecting.
• D)the actual supply to be exactly what the firms were planning.

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Definitions:

CPI Rose

Refers to an increase in the Consumer Price Index, indicating that the average prices of consumer goods and services have gone up, often a measure of inflation.

$7 Per Hour

A specified wage rate where an individual or worker is paid seven dollars for each hour worked.

Purchasing Power

The economic value of a currency depicted by the number of goods or services obtainable by a single monetary unit.

US$ Per C$

The exchange rate that defines how much one can buy in US dollars (US$) with one Canadian dollar (C$).