If the RBA Responds to an Initial Increase in Aggregate

question 46

Multiple Choice

If the RBA responds to an initial increase in aggregate demand by increasing the quantity of money,

• A)real GDP will begin to decrease more rapidly than if the quantity of money had remained constant.
• B)money wages will fall to reduce unemployment.
• C)there will be no inflationary gap.
• D)there is a risk of continued inflation.

---

Definitions:

Age Of The Target

This term likely refers to the specific age or age group that is the focus of a study, policy, or marketing campaign.

Cheerfulness

The quality of being noticeably happy and optimistic.

Talkativeness

The condition or quality of being inclined to talk a lot or engage in conversation frequently.

Imagination

The ability of the mind to be creative or resourceful, forming images or concepts of external objects not present to the senses.