In the Short Run, an Unanticipated Shift to a More

question 8

Multiple Choice

In the short run, an unanticipated shift to a more restrictive monetary policy is most likely to result in

• A) a decrease in short-term interest rates.
• B) a reduction in the growth rate of real GDP.
• C) an increase in the rate of inflation.
• D) an increase in employment.

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Definitions:

Corporation

A legal entity that is separate from its owners, providing them limited liability, and has the ability to raise capital through the sale of shares.

Service Business

A type of business that provides intangible products, such as time, expertise, or activities, where physical goods are not transferred to the customer.

Pet Groomer

A professional who cleans, trims, and styles pets' coats, nails, and fur to maintain their appearance and hygiene.

Lawn Care

The maintenance and management of gardens, yards, or other grassy areas to ensure healthy growth and aesthetic appeal.