Suppose There Currently Is an Inflationary Gap

question 173

Multiple Choice

Suppose there currently is an inflationary gap. What could the government do to bring prices down?

• A) Nothing.
• B) Reduce government spending.
• C) Increase government spending.
• D) Shift the long-run aggregate supply curve.

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The initial salary paid to an employee, not including any benefits, bonuses, or increases.

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The total amount of money earned by an employee before any deductions or taxes are applied.

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The financial remuneration allocated for every working hour.