When the Economy Is Already Operating at Nearly Full Capacity

Multiple Choice

When the economy is already operating at nearly full capacity, further fiscal or monetary stimulus will likely:

A) ​soften inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity.
B) ​trigger inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity.
C) ​soften inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity.
D) ​trigger inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity.