Which of the Following Would Be Evidence That a Contractionary

question 41

Multiple Choice

Which of the following would be evidence that a contractionary gap exists?

• A)Rapid deflation during a period in which plant capacity utilization is below average.
• B)A steady price level and a 5 percent unemployment rate.
• C)Help wanted advertising lower than usual,and the consumer price index lower than expected.
• D)Inflation has risen markedly and the Dow Jones average is at record levels.
• E)The number of new unemployment claims has skyrocketed and the price level is rising.

---

Definitions:

Gilded Age

A term used to describe the late 19th century in the United States, characterized by rapid economic growth, technological progress, and the conspicuous display of wealth by the upper class.

Moral Persuasion

The attempt to influence others' behavior or attitudes through appeal to moral principles or considerations, rather than through coercion.

Great Plains

A broad expanse of flat land, much of it covered in prairie, steppe, and grassland, located in the central United States.

Cash Crops

Cash crops are agricultural crops grown not for the farmer's use but for sale and profit, often including tobacco, cotton, and sugar in historical contexts.