Which of These Changes Is Observed in an Economy When

question 110

Multiple Choice

Which of these changes is observed in an economy when a recessionary gap is closed in the long run?

• A)An increase in the inflation rate and a decrease in the unemployment rate
• B)An increase in the level of output and a decrease in the price level
• C)An increase in both the rate of output and the price level
• D)A decrease in both the rate of output and the price level
• E)A decrease in the inflation rate and an increase in the unemployment rate

---

Definitions:

Service Business

A type of business that provides intangible products, such as time, expertise, or activities, where physical goods are not transferred to the customer.

Pet Groomer

A professional who cleans, trims, and styles pets' coats, nails, and fur to maintain their appearance and hygiene.

Lawn Care

The maintenance and management of gardens, yards, or other grassy areas to ensure healthy growth and aesthetic appeal.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.