Which of the Following Will Most Likely Result from an Unexpected

question 205

Multiple Choice

Which of the following will most likely result from an unexpected increase in prices that decreases real wages and resource prices?

• A) a decrease in unemployment
• B) an increase in unemployment
• C) a decrease in the nominal interest rate
• D) a decrease in aggregate supply and real output

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Definitions:

Munitions Manufacturers

Companies or entities engaged in the production of materials, devices, and equipment intended for use in warfare, including weapons and ammunition.

Corporate Profits

The earnings obtained by corporations after all expenses and taxes have been paid, indicating the financial success and health of a company.

Northward Migration

The movement of populations from the southern regions towards the northern areas, often for economic, social, or environmental reasons.

Race Riots

Violent disturbances and conflicts that arise from racial tensions and prejudices, often involving confrontations between racial or ethnic groups and sometimes with law enforcement.