If Workers Do Not Believe That Policymakers Are Serious About

question 38

Multiple Choice

If workers do not believe that policymakers are serious about fighting inflation,they are most likely to push for higher wages,which will ________ aggregate ________ and lead to unemployment or inflation or both,everything else held constant.

• A)decrease;demand
• B)increase;demand
• C)decrease;supply
• D)increase;supply

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Definitions:

Total Loss

The situation in which the cost of repairing a damaged asset exceeds its value, or when an asset is completely destroyed or lost.

Firm

An organization or business entity engaged in commercial, industrial, or professional activities.

Firm's Output

The aggregate amount of products or services a company generates within a given timeframe.

Firm's Output

The total amount of goods or services produced by a firm over a given period of time.