Given the Existence of Short-Run Trade-Offs Between Inflation and Unemployment

question 48

Multiple Choice

Given the existence of short-run trade-offs between inflation and unemployment, short-run GDP can be expected to increase if

• A) aggregate demand falls.
• B) aggregate demand rises.
• C) potential GDP increases because the labor supply has increased.
• D) potential GDP increases because of some technological improvement.
• E) potential GDP increases because of an increase in the capital stock.

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Definitions:

Indian Lands

Territories historically occupied or used by Indigenous peoples, often subject to disputes and controversies over ownership and rights.

Walking Purchase

A controversial 1737 agreement where Pennsylvania colonists claimed land from the Delaware Indians by walking the perimeter in a fixed time, exploiting the deal unjustly.

Fraudulent Practices

Actions intended to deceive others for personal gain or advantage, often violating legal or ethical standards.

Iroquois

A historically powerful and important northeast Native American confederacy, known as the Haudenosaunee, consisting of six nations: the Mohawk, Onondaga, Oneida, Cayuga, Seneca, and Tuscarora tribes.