If Government Uses Its Stabilization Policies to Maintain Full Employment

question 58

Multiple Choice

If government uses its stabilization policies to maintain full employment under conditions of cost-push inflation,

• A)a deflationary spiral is likely to occur.
• B)an inflationary spiral is likely to occur.
• C)stagflation is likely to occur.
• D)the Phillips Curve is likely to shift inward.

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Definitions:

Third Party Milk Runs

A logistics strategy where a third-party provider collects and delivers small shipments from multiple suppliers in a single trip, increasing efficiency and reducing transportation costs.

LTL Carrier

Less-than-truckload carrier, a transportation service for shipping goods that do not require a full truckload.

Package Carrier

Companies or services that specialize in the delivery of packages, documents, and freight from one location to another.

Private Fleet

A fleet of transportation vehicles owned and operated by a company for its own logistics and distribution needs.