The Short-Run Tradeoff Between Inflation and Unemployment Implies That,in the Short

question 13

Multiple Choice

The short-run tradeoff between inflation and unemployment implies that,in the short run,

• A)a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.
• B)an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.
• C)policymakers are able to reduce the inflation rate and,at the same time,reduce the unemployment rate.
• D)policymakers can influence the inflation rate,but not the unemployment rate.

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Definitions:

Lahar

A mudflow mostly composed of volcanic-derived materials and generally formed on the flank of a volcano.

Composite Volcanoes

Volcanoes constructed from multiple layers of lava flows, volcanic ash, and other volcanic debris, characterized by steep profiles and periodic explosive eruptions.

Lahars

Volcanic mudflows or debris flows that occur when volcanic materials become saturated with water and rapidly move down slopes.

Pyroclastic Column

A dense, vertical cloud of hot volcanic ash, gas, and debris that rises from a volcanic eruption, capable of causing widespread destruction.