If the Economy Is Fully Employed, Then the Inflationary Costs

question 43

Multiple Choice

If the economy is fully employed, then the inflationary costs of expansionary policy are likely to be:

• A)​low, and the unemployment gains minimal.
• B)​low, and the unemployment gains large.
• C)​high, and the unemployment gains minimal.
• D)​high, and the unemployment gains large.

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Definitions:

Era Of Good Feelings

Contemporary characterization of the administration of popular Republican president James Monroe, 1817–1825.

American Politics

The set of activities associated with the governance of the United States of America, including the creation and implementation of public policy, conducted both within government institutions and via political campaigns.

Single-Party Rule

A form of government where only one political party is allowed to govern, blocking multiple parties from holding power.

Herman Melville

An American novelist, short story writer, and poet of the 19th century, best known for his novel "Moby-Dick."