If Policy Makers Do Nothing in Response to a Recessionary

question 103

Multiple Choice

If policy makers do nothing in response to a recessionary gap, what will happen?

• A)a rapid movement toward lower unemployment and higher inflation 
• B)a rapid movement toward lower unemployment and lower inflation 
• C)a slow movement toward lower unemployment and higher inflation 
• D)a slow movement toward lower unemployment and lower inflation

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Definitions:

Negative Effects

Unintended, harmful outcomes or impacts that result from an action, process, or policy.

Passion

A strong emotion or enthusiasm towards an activity, concept, or object.

Entrepreneurial Self-efficacy

An individual's belief in their own ability to successfully launch and manage entrepreneurial ventures.

Risks

The potential for losing something of value, encompassing a range of outcomes from negative impacts to missed opportunities in decision-making.