If There Is No Policy Action in an Economy That

question 36

Multiple Choice

If there is no policy action in an economy that is producing an output below its full-employment level, then

• A)the output returns to full-employment level quickly.
• B)the price level declines slowly.
• C)the price level rises quickly.
• D)the output stays below full-employment for a short period, then rises quickly.

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Definitions:

Organized Labor

A structured group of workers who unite to form a union or labor organization to advocate for workers' rights, better wages, working conditions, and benefits.

Montgomery

The capital city of Alabama, known for its significant role in the American Civil Rights Movement, including the Montgomery Bus Boycott.

Wilmington

A city in Delaware, known for its rich history and significance in American industrial and political development.

Disenfranchisement

The process of depriving someone of the right to vote or other rights of citizenship, often used historically to restrict the voting rights of African Americans, women, and other minority groups through legal and extralegal means.