Which of the Following Models Imply That a Decrease in the Money

question 67

Multiple Choice

Which of the following models imply that a decrease in the money supply reduces unemployment temporarily but not permanently?

• A)both the long-run Phillips curve and the aggregate supply and aggregate demand model.
• B)the aggregate demand and aggregate supply model,but not the long-run Phillips curve.
• C)the long-run Phillips curve,but not the aggregate demand and aggregate supply model.
• D)neither the long-run Phillips curve nor the aggregate supply and aggregate demand model.

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Definitions:

Present Value

The contemporary valuation of a future lump sum or cash flow sequence, based on a chosen rate of earnings.

Nonrenewable Resource

A natural resource that cannot be replaced once it is consumed, such as oil, natural gas, and coal.

Gold Ore

A mineral or rock from which gold can be profitably extracted, typically characterized by the presence of gold particles or veins within the rock.

Forests

Large areas covered predominantly with trees and underbrush, playing a critical role in biodiversity and the environment.