Suppose the central bank decreases the growth rate of the money supply. In the short run, this policy change will affect
a. both the unemployment rate and the inflation rate.
b. the unemployment rate but not the inflation rate.
c. the inflation rate but not the unemployment rate.
d. neither the inflation rate nor the unemployment rate.
a
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If leisure is a normal good, then a decrease in income __________ the time allocated to __________
a. decreases; market work b. decreases; leisure c. decreases; nonmarket work d. increases; leisure e. increases; market work, nonmarket work, and leisure time
If Bob promises to pay Susan $10,000 once Bob receives the royalties from a book if Susan will edit it for him,
A. a copyright is necessary. B. a contract is necessary. C. a trademark is necessary. D. no contract is necessary.
In which of the following situations will market clearing price decrease and the equilibrium quantity increase?
A) an increase in demand with no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply
The official unemployment rate may understate the true rate of unemployment because of
A) discouraged workers who no longer are actively seeking work and are excluded from the statistics. B) increases in worker productivity. C) workers who hold two jobs. D) changes in wage rates.