Which of the following is likely to happen if a contractionary monetary policy is adopted?
A) Real wages will fall. B) The aggregate price level will increase.
C) Equilibrium unemployment will fall. D) The real interest rate will increase.
D
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What is likely to happen to the allocation of resources if there is a sudden increase in the demand for a good produced by a perfectly competitive industry?
What will be an ideal response?
Most economists believe that the aggregate supply curve is
A) upward-sloping in the short run, but vertical in the long run. B) upward-sloping in the long run, but vertical in the short run. C) upward-sloping in both the short run and in the long run. D) vertical in both the short run and in the long run.
Which of the following is among the possible reasons that the 2007-2009 financial crisis did not result in an economic depression?
A) the declaration of a bank holiday by the nation's President B) international policy coordination C) strict reliance on conventional monetary policy D) government spending restraint
Economists use the term ceteris paribus to indicate which of the following?
What will be an ideal response?