Multiple Choice
Which of the following decreases inflation and increases unemployment in the short run?
A) Either a decrease in government expenditures by itself or a decrease in the money supply growth rate by itself.
B) A decrease in government expenditures, but not a decrease in the money supply growth rate.
C) A decrease in the money supply growth rate, but not a decrease in government expenditures.
D) Neither a decrease in government expenditures nor a decrease in the money supply.
Correct Answer:

Verified
Correct Answer:
Verified
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