In the Long Run, What Are the Effects of a Decrease

question 153

Multiple Choice

In the long run, what are the effects of a decrease in the rate of growth of the money supply?

• A) It will increase inflation and shift the short-run Phillips curve right.
• B) It will increase inflation and shift the short-run Phillips curve left.
• C) It will decrease inflation and shift the short-run Philips curve right.
• D) It will decrease inflation and shift the short-run Phillips curve left.

---

Definitions:

Lichens

Symbiotic organisms composed of fungi and algae or cyanobacteria, where the fungi provide structure and the algae or bacteria provide photosynthesis.

Toxic Blooms

Rapid growth of algae that produce harmful toxins, affecting water quality and marine life, and can pose risks to humans.

Herpesvirus

A large family of viruses that cause diseases in animals, including humans, characterized by latent and recurrent infections.

Epstein-Barr Virus

A herpesvirus that can cause infectious mononucleosis (mono) and is associated with various types of cancers and autoimmune diseases.