If Policy Makers Do Nothing in Response to an Inflationary

question 123

Multiple Choice

If policy makers do nothing in response to an inflationary gap, what will happen?

• A)a rapid movement toward lower unemployment and higher inflation 
• B)a rapid movement toward lower unemployment and lower inflation 
• C)a slow movement toward higher unemployment and higher inflation 
• D)a slow movement toward lower unemployment and lower inflation

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Definitions:

Pons

A part of the brain located above the medulla, involved in regulating breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.

Thoracic Pressure

The pressure within the thoracic cavity, affecting respiratory and cardiovascular functions, influenced by lung volume and diaphragm movement.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen in mammals, playing a major role in breathing.

Intercostal Muscles

Muscles located between the ribs that play a role in the breathing process.