If the Government Uses Expansionary, Monetary, or fiScal Policies to Counter

question 61

Multiple Choice

If the government uses expansionary, monetary, or fiscal policies to counter the output effects of cost-push inflation, then the economy is likely to experience

• A) a decline in nominal wages.
• B) an inflationary spiral.
• C) a recession.
• D) disinflation.

---

Definitions:

Survivor Resiliency

The ability of individuals who have experienced traumatic events to recover, adapt, and show strength in the face of adversity.

Compulsive Acts

Behaviors that a person feels compelled to perform repeatedly, often as a way of relieving anxiety or stress, characteristic of certain mental disorders such as OCD.

Humanistic Perspective

A psychological approach that emphasizes personal growth, self-awareness, and the capacity for self-healing as fundamental aspects of a person's behavior.

Learning Perspective

A psychological viewpoint that emphasizes the effects of experience on behavior, focusing on how individuals learn and adapt through their interactions with the environment.