A Shock Increases the Costs of Production

question 13

Multiple Choice

A shock increases the costs of production.Given the effects of this shock,if the central bank wants to return the unemployment rate towards its previous level it would

• A)increase the rate at which the money supply increases.This will also move inflation closer to its previous rate..
• B)increase the rate at which the money supply increases.However,this will make inflation higher than its previous rate
• C)decrease the rate at which the money supply increases.This will also move inflation closer to its original rate
• D)decrease the rate at which the money supply increases.However,this will make higher than its previous rate.

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Definitions:

Common Ancestor

Forebear of two or more lineages or family groups; ancestral to both groups.

Nervous Systems

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating actions and sensory information.

Organisms

Entities that exhibit the characteristics of life, such as growth, reproduction, and the ability to respond to their environment.

Brain Cells

The cells that make up the brain, including neurons which process and transmit information, and glial cells that provide support and protection.