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

---

Definitions:

Heredity

The passing of traits from parents to offspring through genes, a fundamental principle of genetics.

Basic Laws

Fundamental principles that form the foundation of a legal system, often enshrined in a constitution.

Enzymes

Proteins that initiate and direct chemical reactions.

Chemical Reactions

Processes that involve the rearrangement of the molecules or ionic structure of substances, resulting in the formation of new products.