What Will Occur in the Short Run If There Is

question 5

Multiple Choice

What will occur in the short run if there is cost-push inflation and the government adopts a hands-off approach to it?

• A) an increase in real output
• B) an inflationary spiral
• C) low unemployment and a loss of real output
• D) high unemployment and a loss of real output

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Definitions:

Computer Sales

The business activity of selling computers, computer components, and software to consumers or other businesses.

Title Passes

The legal transfer of ownership of a property from the seller to the buyer.

Physically Delivered

Refers to contracts, particularly in commodities trading, where the actual physical commodity is delivered upon contract expiration.

Buyer in Ordinary

Refers to a purchaser of goods who buys from someone who usually sells such goods, thereby granting certain legal protections under commercial law.