Multiple Choice
Suppose that union leaders negotiate a significant increase in nominal wages. If the Federal Reserve holds the growth in the money supply constant, in the short run the aggregate supply curve will shift
A) up, unemployment will increase, and prices will rise.
B) down, unemployment will increase, and prices will rise.
C) down, unemployment will decrease, and prices will rise.
D) up, unemployment will decrease, and prices will rise.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: If the growth rate of money is
Q8: To stop hyperinflations, a nation must<br>A) increase
Q9: Increases in unanticipated inflation will impact employment
Q10: Suppose the public expects a 4 percent
Q11: Suppose that the expected inflation rate is
Q13: If the growth rate of money changes,
Q14: Monetarists<br>A) believe that fiscal policy is the
Q15: If the inflation rate unexpectedly increases, it
Q16: Define "money illusion" and explain its cause.
Q17: Velocity of money =<br>A) (nominal GDP) x