What tool is available to monetary policymakers to shift the short-run aggregate supply curve to the left following a positive inflation shock?
A. A rightward shift of the monetary policy reaction curve
B. A leftward shift of the monetary policy reaction curve
C. None of the answers given is correct; the actions of monetary policymakers affect the dynamic aggregate demand curve
D. Open market purchases of government securities
Answer: C
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How did the use of the euro limit the use of monetary policy by European nations severely affected by the Financial Crisis of 2007-2009?
What will be an ideal response?
Diversification is determined by adding value
Indicate whether the statement is true or false
The "law" of diminishing returns
a. is deduced from the basic biochemical relationship of agricultural theory. b. was constructed as the basis of observation during experiments on the impact of fertilizer on output in the 1930s. c. is based on regular observations of input-output relationships over the last two centuries. d. is borrowed from physical laws related to conversion of matter and energy.
Effective minimum-wage laws will most likely
a. increase demand for labor. b. create a surplus of labor. c. increase incomes for all unskilled workers. d. decrease incomes for all unskilled workers.