Multiple Choice
Suppose policymakers take actions that cause a contraction of aggregate demand.Which of the following is a short-run consequence of this contraction?
A) The inflation rate decreases.
B) The level of output decreases.
C) The unemployment rate increases.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Which of the following statements is correct?<br>A)In
Q2: The misery index is calculated as the<br>A)inflation
Q4: When monetary and fiscal policymakers expand aggregate
Q5: One determinant of the natural rate of
Q7: The misery index is supposed to measure
Q10: In the long run,<br>A)the natural rate of
Q10: In the long run,<br>A)the natural rate of
Q11: In the long run,inflation<br>A)and unemployment are primarily
Q109: Closely watched indicators such as the inflation
Q125: One determinant of the long-run average unemployment