If a Central Bank Increases the Money Supply in Response

question 35

Multiple Choice

If a central bank increases the money supply in response to an adverse supply shock,then which of the following quantities moves closer to its pre-shock value as a result?

• A)both the price level and output
• B)the price level but not output
• C)output but not the price level
• D)neither output nor the price level

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Definitions:

Terms Of Employment

The conditions and agreements under which an employee works, including hours, salary, benefits, and duties.

Specific Performance

A legal remedy requiring a party to perform their obligations under a contract, rather than simply paying damages.

Wrongful Dismissal

Termination of employment without legal justification, violating the contract or laws protecting the employee's rights.

Severance Pay

Severance pay refers to the compensation that an employer provides to an employee who has been laid off or terminated, typically based on the length of employment.