If the Government Raises the Growth of Nominal GDP in Response

question 113

Multiple Choice

If the government raises the growth of nominal GDP in response to a supply shock,

• A)inflation will decelerate and unemployment will fall.
• B)inflation will accelerate and unemployment will worsen.
• C)employment can be maintained so long as expectations are unaffected by the supply shock.
• D)None of these results follow an increase in the growth of nominal GDP.

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Definitions:

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An aggressive marketing strategy that employs a wide range of advertising and promotional techniques to maximize consumer engagement and drive sales.

Cash Discount

A reduction in price offered to buyers as an incentive for making payment in cash or within a specified prompt payment period.

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