The Following Is a List of Economic Events

question 39

Multiple Choice

The following is a list of economic events:
1.A big cut in the price of imported oil.
2.An increase in the money supply.
3.An increase in labour productivity.
4.A decline in the GDP of the USA
5.A big rise in nominal wages.
-How does the economy eventually adjust to an inflationary gap?

• A)The nominal wage and price levels will both increase.
• B)The nominal wage and price level will both decrease.
• C)The nominal wage level will decrease but the price level will increase.
• D)The nominal wage level will increase but the price level will decrease.

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Definitions:

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Accommodate

Adjusting actions or decisions to take into account others' needs, preferences, or special requirements.

Avoid

To keep away from or stop oneself from doing something; an action or strategy aimed at preventing undesirable outcomes.