If Labor Costs Rise at the Same Time That the Federal

question 5

Multiple Choice

If labor costs rise at the same time that the federal government decreases its purchases,in the short run

• A) aggregate output and the price level will both increase.
• B) aggregate output will increase, but the price level will fall.
• C) aggregate output and the price level will both fall.
• D) aggregate output will fall, but the price level may either increase or decrease.

---

Definitions:

Consideration

In contract law, it refers to something of value exchanged between parties, which is necessary for the formation of a legally binding contract.

Sued

The action of bringing a lawsuit against an individual or entity, claiming wrongdoing or seeking remedies under law.

Unconscionable

A situation or term in an agreement that is so unjust or overwhelmingly one-sided in favor of the party with more power that it is deemed unenforceable under law.

Shocks the Conscience

A legal standard for determining whether a legal or governmental decision is so unjust or egregious that it violates fundamental fairness.