In the short run, an unanticipated shift to a more restrictive monetary policy is most likely to result in
a. a decrease in short-term interest rates.
b. a reduction in the growth rate of real GDP.
c. an increase in the rate of inflation.
d. an increase in employment.
B
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Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. If the natural rate of unemployment is 5 percent, how do you expect inflation to change?
What will be an ideal response?
Which of the following is not an indicator that is used by the World Bank in measuring the level of economic development?
a. life expectancy at birth. b. adult literacy rate. c. infant mortality rate. d. all of the above are not used by the World Bank.
Mark complains: "I can't believe they raised the price of comic books, and because of this, I'm going to reduce my demand for comic books." Is Mark stating the concept of demand correctly?
Refer to the below tables. What will the maximum total profits be?
Assume that the short-run cost and demand data given in the tables below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion.
A. $65
B. $85
C. $90
D. $110