Identify the correct statement about the effect of an expansionary monetary policy in an economy
a. It results in an increase in real gross domestic product in the short run and inflation in the long run.
b. It results in a decrease in real gross domestic product in the short run and inflation in the long run.
c. It results in an increase in real gross domestic product in the short run and deflation in the long run.
d. It results in a decrease in real gross domestic product in the short run and deflation in the long run.
a
You might also like to view...
The United States, as a bilateral aid donor
a. ranks high in amount and high as a percentage of GDP b. ranks low in amount and high as a percentage of GDP c. ranks high in amount and low as a percentage of GDP d. ranks low in amount and low as a percentage of GDP e. is not ranked because all its aid is provided through the World Bank
The slope of the Phillips curve in the United States was smallest during which period?
A) 1985-2012 B) 1970-1984 C) 1947-1969 D) 1776-1800
Which of the following would cause the U.S. dollar to depreciate against the Japanese yen?
A. greater popularity of U.S. exports in Japan B. a higher price level in Japan C. higher real interest rates in the United States D. higher incomes in the United States
To conduct a partial equilibrium analysis of a change in consumer preferences toward coffee and away from tea, you must consider
A. changes in the amount of resources allocated to the production of coffee. B. changes in the price of resources allocated to the production of coffee. C. changes in the equilibrium price and quantity of coffee. D. all of the above