Which of the Following Will Most Likely Result from an Unexpected

question 205

Multiple Choice

Which of the following will most likely result from an unexpected increase in prices that decreases real wages and resource prices?

• A) a decrease in unemployment
• B) an increase in unemployment
• C) a decrease in the nominal interest rate
• D) a decrease in aggregate supply and real output

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Definitions:

Potential Ramifications

Possible consequences or outcomes that could arise as a result of a specific action or decision.

President

The elected head of a republican state or organization who typically represents the leadership or authority.

Weak Relationship

Describes a connection or correlation between variables that is minimal or not statistically significant.

Subjective Predictors

Variables perceived by individuals that they believe will predict future outcomes, often based on personal judgment.