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Which of the Following Decreases Inflation and Increases Unemployment in the Short

Question 36

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:

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