A shock increases the costs of production. Given the effects of this shock, if the central bank wants to return the unemployment rate towards its previous level it would
a. increase the rate at which the money supply increases. This will also move inflation closer to its previous rate..
b. increase the rate at which the money supply increases. However, this will make inflation higher than its previous rate
c. decrease the rate at which the money supply increases. This will also move inflation closer to its original rate
d. decrease the rate at which the money supply increases. However, this will make higher than its previous rate.
b
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The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________
A) area A; area B + area C + area E + area F B) area A + area B + area C; area E + area F C) area E + area F; area A D) area B + area C + area D; area E + area F E) area A + area B + area C + area D; area E + area F
The age distribution within the population of a country can have a considerable impact on the economy and the _____________ of living.
a. standard b. duration c. cost d. modality
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is
a. above the labor supply curve under perfect competition b. the market supply curve of labor c. below the labor supply curve under perfect competition d. changed because workers are now more willing to supply labor e. perfectly horizontal
Which of the following about inventory changes and GDP is true?
What will be an ideal response?