Which of the Following Was NOT Cited as Contributing to Unusual

question 43

Multiple Choice

Which of the following was NOT cited as contributing to unusual uncertainty having an adverse effect on aggregate supply?

• A) the possibility that Congress may let the 2001, 2003 tax cuts to expire
• B) the Fed's limited use of monetary policy in fighting the recession
• C) the severity of the financial crisis
• D) concern that the Affordable Care act would increase the cost of hiring workers

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time, typically measured on a yearly basis.

Low Inflation

A situation characterized by a slow rate of increase in the prices of goods and services, indicating stable economic conditions.

Variability

The extent to which data points in a data set differ from each other and from the mean or average, representing the dispersion within the data.

Relative Price Changes

Variations in the price of one good or service in relation to the prices of other goods and services.