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:

Colitis

Inflammation of the inner lining of the colon, often causing discomfort and diarrhoea.

Incontinent

Unable to control the bladder or bowel.

Anus

The opening at the end of the digestive tract through which feces leave the body.

Paralysis

The inability to control movement or sensation in some or all of the body, usually caused by sickness, toxins, or physical harm.