As an Expansionary Gap Is Closed in the Long Run

question 162

Multiple Choice

As an expansionary gap is closed in the long run by firms' actions,

• A)output decreases and the price level increases
• B)inflation decreases and unemployment rises
• C)both output and the price level increase
• D)both output and the price level decrease
• E)inflation rises and unemployment decreases

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Definitions:

Diaphysis

The shaft or central part of a long bone.

Epiphyseal Plate

Also known as the growth plate, it is a hyaline cartilage plate in the metaphysis at the ends of long bones, where bone growth occurs.

Lacunae

Small cavities in bone or cartilage tissue that house cells.

Spongy Bone

Also known as cancellous or trabecular bone; a less dense, more porous form of bone found at the ends of long bones and in the vertebrae.