Based on the Figure Below

question 138

Multiple Choice

Based on the figure below. An economy is currently in long-run equilibrium at point B, at an inflation rate of π', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ___ creating _____gap.

• A) A; an expansionary
• B) A; a recessionary
• C) D; a recessionary
• D) D; an expansionary

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Definitions:

Maintaining Appearance

The act of keeping up or preserving one's external look or the outward aesthetic aspect of objects or places.

Job Performance

The evaluation of an employee's effectiveness and efficiency in executing their job duties.

Personal Qualifications

The sum of an individual's abilities, experiences, and attributes deemed suitable for a particular role or job.

Cultural Awareness

The understanding and sensitivity to the values, beliefs, practices, and cultural differences of other people.