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:

Military Personnel

Members of the armed forces, including soldiers, sailors, airmen, and marines, who serve in the military to protect and defend their country.

Civilian Federal Workforce

The body of employees working for the United States government who are not in the military or law enforcement.

Independent Agency

A government body that operates independently of the executive branch, often created to oversee and regulate specific activities or concerns.

Government Corporation

A legal entity created by a government to undertake commercial activities on its behalf.