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:

Data Bus

A communication system within a computer or electronic device used for transmitting data between components.

Engine Management ECM

Engine Management Electronic Control Module, a central part of the engine management system that processes information from engine sensors to adjust fuel delivery, ignition timing, and other engine parameters for optimum performance and emissions.

Automotive

Pertaining to the design, production, and operation of motor vehicles.

Light-duty Truck Equivalent

A classification for trucks and commercial vehicles based on weight, design, and usage, typically for less demanding transportation tasks.