According to Phelps and Friedman, in the Short Run, What

question 95

Multiple Choice

According to Phelps and Friedman, in the short run, what effect does an increase in the money supply have on prices and unemployment?

• A) It raises prices and unemployment.
• B) It raises prices and reduces unemployment.
• C) It reduces prices and raises unemployment.
• D) It reduces prices and leaves unemployment unchanged.

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Definitions:

Nutrient

Substances obtained from food that are vital for growth, metabolism, and overall body function.

Polysaccharide

A carbohydrate molecule composed of long chains of monosaccharide units bound together by glycosidic linkages.

Glycogen

A multibranched polysaccharide of glucose that serves as a form of energy storage in animals, fungi, and bacteria.

Vitamin Deficiency

A condition resulting from the lack of essential vitamins in the diet, leading to various health problems.