An Increase in Inflation Is Likely to Occur When Government

question 105

Multiple Choice

An increase in inflation is likely to occur when government:

• A)counters cost-push inflation with a stimulative fiscal policy or monetary policy.
• B)adopts a hands-off approach to cost-push inflation.
• C)increases aggregate supply by lowering nominal wages.
• D)increases aggregate demand by raising nominal wages.

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Definitions:

Social Learning

A theory which suggests that people learn new behaviors by observing and imitating others, as well as through the direct experience of rewards or punishments.

Affective Commitment

An emotional or psychological attachment of an employee to their organization, which influences their willingness to continue working in the organization.

Employee Intention

The plans or desires employees have regarding staying with or leaving their current employer.

Strong Desire

An intense yearning or longing for something, often driving motivation and action toward achieving a specific goal.