When the Economy Is in an Inflationary Gap,the Labor Market

question 107

Multiple Choice

When the economy is in an inflationary gap,the labor market is experiencing a _____________.In a self-regulating economy,wage rates will then ___________ and the ______________ curve will shift __________________.

• A) shortage; rise; SRAS; leftward
• B) shortage; fall; SRAS; leftward
• C) surplus; rise; AD; rightward
• D) shortage; fall; AD; rightward
• E) surplus; fall; SRAS; rightward

---

Definitions:

Operating Activities

Financial transactions and events that affect the net income of a business.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods and services received but not yet paid for, typically due within a year.

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been accounted for, over a specific period.

Operating Activities

The core revenue-generating activities of a business, including production, sales, and delivery of the company's product and services.