The Sequence of Events by Which Inflation Can Reduce Output

question 77

Multiple Choice

The sequence of events by which inflation can reduce output is:

• A)as prices rise, the quantity of goods and services demanded increases, the firms therefore, produce more output which causes the unemployment to increase.
• B)as prices rise, the quantity of goods and services demanded increases, the firms therefore, produce more output which causes the unemployment to decrease.
• C)as prices rise, the quantity of goods and services demanded falls, the firms therefore, produce less output which causes the unemployment to increase.
• D)as prices rise, the quantity of goods and services demanded falls, the firms therefore, produce less output which causes the unemployment to decrease.

---

Definitions:

Weight

A measure of the gravitational force exerted on an object, typically measured in kilograms or pounds.

Drastic Diet

A significant and often sudden change in dietary habits aimed at rapid weight loss.

Antisocial Personality Disorder

A mental condition characterized by a long-term pattern of manipulation, exploitation, or violation of others' rights.

Remorse

A deep feeling of regret or guilt for a wrong committed.