When Cost-Push Inflation Starts, Real GDP ________ and the Unemployment

question 44

Multiple Choice

When cost-push inflation starts, real GDP ________ and the unemployment rate ________.

• A) increases; falls
• B) does not change; does not change
• C) does not change; falls
• D) decreases; falls
• E) decreases; rises

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Definitions:

Liability

Legal responsibilities or obligations that arise from actions, transactions, or circumstances.

Reasonable Care

A legal standard that denotes the degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

Absolute Privilege

A special right, immunity, permission, or benefit given to certain individuals that allows them to make any statements about someone without being held liable for defamation for any false statement made, regardless of intent or knowledge of the falsity of the claim.

Defamation

The act of making false statements that harm someone's reputation.