One Danger of Using Monetary Policy to End a Recession

question 43

Multiple Choice

One danger of using monetary policy to end a recession is that

• A) sticky wages will have the purchasing power eroded.
• B) prices will rise and workers will demand higher wages.
• C) it might not be possible for AD to shift enough.
• D) none of the above.

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Definitions:

Echo

A sound that is reflected off a surface and heard again by its source or listener, often used in the study of acoustics.

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The ability to maintain and keep information in memory over time.

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The cognitive process involving the encoding, storing, and retrieving of information experienced or learned.