If Cost-Push Inflation Occurs and the Government Adopts a "Hands-Off

question 113

Multiple Choice

If cost-push inflation occurs and the government adopts a "hands-off" policy approach, then according to the simple extended AD-AS model, in the long run the economy will:

• A) Get back to where it started from
• B) Get stuck with high unemployment
• C) Experience an inflationary spiral
• D) Have a higher price level

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Definitions:

The Second Shift

The phenomenon where working individuals, often women, undertake additional unpaid labor at home, such as childcare and housework, after their formal job.

Interviews

A method of gathering information by asking questions verbally, typically in person but also possible over the phone or online, often used in research and hiring processes.

Married Couples

Two individuals legally united through marriage, forming a recognized partnership and social unit according to legal, religious, or cultural norms.

Workforce

The collective group of people engaged in work or employed in a specific sector or economy, often analyzed in terms of skills, demographics, and availability.