Which of the Following Is an Effect of Persistently High

question 44

Multiple Choice

Which of the following is an effect of persistently high wage and price inflation in the economy?

• A) Firms will substitute workers for capital equipment.
• B) Consumers will increase consumption and borrowing.
• C) The cost of production for firms will increase.
• D) The level of business confidence in the economy will increase.

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Definitions:

Values

Fundamental beliefs or standards that guide behaviors and decisions in a society or individual.

Ideals

Principles or values that one actively pursues as goals or standards of perfection.

Assumptions

Beliefs or ideas taken for granted without proof in research or argumentation.

Authority-Oriented

Characterized by a focus on following orders, respecting hierarchy, and valuing leadership and structure in decision-making contexts.