If Policymakers Expand Aggregate Demand, What Happens to Inflation and Unemployment

question 141

Multiple Choice

If policymakers expand aggregate demand, what happens to inflation and unemployment in the long run?

• A) Inflation will be higher and unemployment will be lower.
• B) Inflation will be higher and unemployment will be unchanged.
• C) Inflation and unemployment will be unchanged.
• D) Both inflation and unemployment will be higher.

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Definitions:

S-cam Profiles

The shape and design of the cams used in a drum brake system which push the brake shoes apart and against the braking surface to stop the vehicle.

Closed-Anchor Brake Shoe

A brake shoe configuration where the ends are fixed in place, enhancing braking stability and force.

Anchor Pin

A pin used to secure or anchor components together, often found in brake assemblies to hold brake shoes in place.

S-cam Brake Systems

A type of drum brake system commonly used in heavy vehicles, where the rotation of an S-shaped camshaft forces brake shoes outward to create friction.