An Inflationary Gap Can Be Closed with

question 103

Multiple Choice

An inflationary gap can be closed with

• A)using an expansionary monetary policy.
• B)imposing price controls to prevent prices from rising.
• C)using a policy action such as a reduction in government purchases.

---

Definitions:

Inherited Properties

Attributes, possessions, or genetic traits transmitted from parents to their offspring through genes or by legal means after death.

Federal Minimum Wage

The lowest hourly wage that employers can legally pay their workers as mandated by the U.S. federal government.

Redlining

Discriminatory practice by banks or other financial institutions of denying or limiting financial services to certain neighborhoods based on racial or ethnic composition.

Minority Neighborhoods

Urban areas predominantly inhabited by members of racial or ethnic minority groups, often shaped by historical, social, and economic factors.