As a Contractionary Gap Is Closed in the Long Run

question 23

Multiple Choice

As a contractionary gap is closed in the long run,

• A)the inflation rate increases and unemployment decreases
• B)output increases and the price level decreases
• C)both output and the price level increase
• D)both output and the price level decrease
• E)the inflation rate decreases and unemployment increases

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Definitions:

ADH

Antidiuretic Hormone, a hormone secreted by the pituitary gland that regulates the balance of water in the body by reducing the amount of water excreted in the urine.

Addison Disease

A disorder characterized by insufficient production of cortisol and sometimes aldosterone by the adrenal glands, leading to fatigue, muscle weakness, and other symptoms.

Aldosterone

A hormone produced by the adrenal glands that helps regulate blood pressure by controlling sodium and water balance in the body.

Cortisol

A steroid hormone produced by the adrenal glands, involved in the body's stress response, metabolism, and immune response.