When Cost-Push Inflation Starts, Real GDP ________ and the Unemployment

question 44

Multiple Choice

When cost-push inflation starts, real GDP ________ and the unemployment rate ________.

• A) increases; falls
• B) does not change; does not change
• C) does not change; falls
• D) decreases; falls
• E) decreases; rises

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Definitions:

Discharge Permit

An authorization, typically issued by a government agency, allowing the release of pollutants into the environment under specified conditions.

Army Corps of Engineers

A federal agency under the Department of Defense in the United States, responsible for public engineering, design, and construction management, including improvements to natural resources and infrastructure.

Clean Air Act

A wide-ranging federal legislation in the United States designed to control emissions from both stationary and mobile sources in order to safeguard public health and the environment.

Acid Rain

Precipitation containing harmful amounts of sulfuric and nitric acids resulting from the atmospheric emission of sulfur dioxide and nitrogen oxides.