What Will Occur in the Short Run If There Is

question 69

Multiple Choice

What will occur in the short run if there is cost-push inflation and the government adopts a hands-off approach to it?

• A) An increase in real output
• B) An inflationary spiral
• C) Low unemployment and a loss of real output
• D) High unemployment and a loss of real output

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Definitions:

Arms Crossed

A body language gesture often interpreted as being defensive, closed off, or uncomfortable.

Bias-free Language

Language that avoids prejudice, discrimination, or stereotypes, ensuring inclusivity and respect towards all individuals regardless of their background or identity.

Discriminating

Showing refined judgment or refined taste, able to discern subtle differences; in some contexts, it may refer to prejudicial or unfair differentiation.

Physical Condition

Physical Condition refers to the state of one's physical health and well-being, often characterized by levels of fitness, strength, and functionality.