Multiple Choice
The reason that stagflation tends to follow an inflationary gap is that
A) output tends to fall even as prices continue to rise as part of the self-correcting mechanism.
B) government officials tend to overact in controlling inflation.
C) businesses try to increase profits by raising prices and increasing output.
D) workers accept pay cuts to maintain employment.
Correct Answer:
Verified
Correct Answer:
Verified
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