If Government Uses Fiscal Policy to Restrain Cost-Push Inflation, We

question 120

Multiple Choice

If government uses fiscal policy to restrain cost-push inflation, we can expect

• A)the unemployment rate to rise.
• B)the unemployment rate to fall.
• C)the aggregate demand curve to shift rightward.
• D)tax-rate declines and increases in government spending.

Understand and implement grammar standards in business writing.

Correctly use punctuation in business writing.

Apply basic principles of capitalization in sentences.

Distinguish between correct and incorrect capitalization in specific contexts.

---

Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Overconfidence Effect

The cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.

Availability Heuristic

A cognitive shortcut based on the first examples that surface in one's thoughts when considering a particular topic, idea, strategy, or choice.

Confirmation Bias

The tendency to interpret new evidence as confirmation of one's existing beliefs or theories.