In the Long-Run, the Attempt to Correct Slow Economic Growth

question 22

Multiple Choice

In the long-run, the attempt to correct slow economic growth or the unemployment caused by cost-push inflation by implementing an expansionary fiscal policy will most likely produce:

• A)disinflation.
• B)a recession.
• C)a price level surprise.
• D)inflation

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Definitions:

Priced

Determined the monetary value of a product, service, or asset.

Cereal

A food product made from processed grains, typically eaten as a breakfast food, often fortified with vitamins.

Percent Change

The measure of the degree of change over time, calculated as the difference from the original value to the new value, divided by the original value, multiplied by 100.

Per-Kilometre Charge

A fee assessed based on the distance travelled, often used in contexts such as delivery services, transportation, or car rentals.