If Cost-Push Inflation Occurs and the Government Adopts a Hands-Off

question 113

Multiple Choice

If cost-push inflation occurs and the government adopts a hands-off policy approach, then, according to the simple extended AD-AS model, in the long run the economy will

• A) get back to where it started from.
• B) get stuck with high unemployment.
• C) experience an inflationary spiral.
• D) have a higher price level.

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Definitions:

Somnophilia

A paraphilia where an individual finds sexual arousal in a partner who is asleep or unconscious.

Psychosexual Event

An experience or situation that has significant impact on an individual's psychological aspects of sexual development.

Alfred Kinsey

An American biologist and sexologist who founded the Institute for Sex Research at Indiana University and is known for his research on human sexual behavior.

Ejaculation

The release of semen from the male reproductive system, often occurring at the climax of sexual arousal.