If the Government Adopts a Hands-Off Approach to Cost-Push Inflation

question 133

Multiple Choice

If the government adopts a hands-off approach to cost-push inflation in the economy, then in the short run there is likely to be

• A) a rise in real output.
• B) a fall in unemployment.
• C) an inflationary spiral.
• D) a recession.

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Definitions:

Alcohol Problems

The challenges and negative consequences associated with excessive or inappropriate consumption of alcohol, including addiction, health issues, and social problems.

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms that occur within one month after exposure to a traumatic event.

External Locus

A belief system where individuals perceive outcomes in their lives as being outside of their control, influenced by external factors or forces.

Catastrophic Stress

A type of severe stress resulting from an event that is perceived as a disaster, leading to significant emotional, psychological, or physical distress.