Solved

In the Long Run, What Event(s) Can Lead to an Increase

Question 32

Multiple Choice

In the long run, what event(s) can lead to an increase in inflation without changing the unemployment rate above its natural level?


A) a tax decrease combined with a government spending decrease
B) an increase in government spending combined with restrictive monetary policy
C) an adverse supply shock
D) an adverse supply shock accommodated by expansionary monetary policy
E) a favorable supply shock

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions