One Explanation That Economists Offer to Explain Why a Decline

Multiple Choice

One explanation that economists offer to explain why a decline in the unemployment rate can raise the rate of inflation is that

A) firms will be put in a position of competing more intensely for scarce resources.
B) people will pay higher prices because competition among suppliers intensifies.
C) workers will focus more directly on protecting their jobs.
D) firms will refuse to shift higher labour costs along to consumers for fear of losing their markets.