If Policymakers Do Nothing in Response to an Inflationary Gap

question 36

Multiple Choice

If policymakers do nothing in response to an inflationary 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 higher unemployment and higher inflation
• D)A slow movement toward lower unemployment and lower inflation

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Definitions:

Thermal Contraction

The decrease in a material's volume in response to a decrease in temperature.

Plant Species

A category that ranks below genus and denotes a group of plants that share certain characteristics and are capable of interbreeding to produce fertile offspring.

Endangered Species

Species that are at risk of extinction due to a dramatic decline in their population or habitat.

Flowering Plants

Plants that belong to the group Angiosperms, characterized by bearing flowers in which seeds are enclosed within a fruit.