In the short run, an increase in the money stock growth rate
a. moves the economy up the short-run Phillips curve.
b. moves the economy down the short-run Phillips curve.
c. shifts the short-run Phillips curve to the right.
d. results in a decline in the natural rate of unemployment and a rise in the inflation rate.
e. both b and d are correct.
B
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Which of the following increases aggregate demand?
A) a decrease in taxes B) a decrease in foreign income C) a decrease in government expenditure D) a rise in the interest rate
Sometimes what we think is a collective consumption good only has those characteristics because of _____
a. high fixed costs. b. private production c. economies of scale d. government production
According to traditional Keynesian economics, contractionary fiscal policy initiated by the federal government
When aggregate expenditure falls short of the level needed to generate a full- employment, noninflationary equilibrium, then a recessionary gap exists
Indicate whether the statement is true or false