When Cost-Push Inflation Starts,real GDP ________ and the Unemployment Rate

question 174

Multiple Choice

When cost-push inflation starts,real GDP ________ and the unemployment rate ________.

• A)decreases;falls
• B)does not change;falls
• C)decreases;rises
• D)does not change;does not change
• E)increases;falls

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Definitions:

Depression

In geology, a landform sunk below its surroundings, forming a low area which can be natural or man-made.

Valley

A low area between hills or mountains, typically with a river running through it.

Ridge

A long, narrow elevation of land, often formed by the continuous movement of the Earth's crust.

Ridges

Elevated geological features, typically linear, that can form through tectonic activities such as at mid-ocean ridges or due to erosional processes.