An Increase in ________ Will Cause the ________ to Fall

question 160

Multiple Choice

An increase in ________ will cause the ________ to fall by a larger percentage if firms aren't holding excess labor.

• A) output; inflation rate
• B) output; unemployment rate
• C) unemployment rate; GDP
• D) inflation rate; GDP

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Definitions:

Clearing of Checks

The process by which banks exchange checks or drafts drawn on each other and settle the differences to facilitate the actual transaction the check represents.

Currency in Circulation

Refers to the physical money, including coins and paper money, that is actively used and exchanged in an economy.

Bank Checking Accounts

Banking services that allow customers to deposit, withdraw, and write checks against funds they have in the account.

Regulation

The establishment and enforcement of rules and standards by an authority, often government, to regulate activities within a specific domain.