If Firms Have Only a Weak Tendency to Raise Markups

question 8

Multiple Choice

If firms have only a weak tendency to raise markups during cyclical expansions,or if there are only a few auction markets in raw materials,then

• A)the SP curve will be relatively flat and a "cold-turkey" cure for inflation will be relatively quick.
• B)the SP curve will be relatively flat and a "cold-turkey" cure for inflation will be long lasting.
• C)the SP curve will be relatively steep and a "cold-turkey" cure for inflation will be relatively quick.
• D)the SP curve will be relatively steep and a "cold-turkey" cure for inflation will be long lasting.

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Definitions:

Growth-Impeding

Factors or conditions that hinder or slow down the natural development or enlargement of an organism, system, or process.

Psychoanalysis

A therapeutic approach that explores unconscious drives and conflicts, originated by Sigmund Freud.

Insight Therapy

A form of psychotherapy that aims to increase a patient's awareness of underlying motives and defenses to improve mental health.

Psychotherapy

A general term for treating mental health problems by talking with a psychiatrist, psychologist, or another mental health provider, focusing on understanding and resolving problematic behaviors, beliefs, feelings, and relationship issues.