In the Short Run, Which of the Following Is Not

question 122

Multiple Choice

In the short run, which of the following is not correct?

• A)Increasing the money supply increases the demand for goods and services.
• B)Increasing the money supply encourages firms to hire more workers.
• C)Lowering the money supply leads to a higher level of unemployment.
• D)Policies that encourage higher employment will also induce a lower rate of inflation.

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Definitions:

Behaviorism

A psychological approach that emphasizes the study of observable behavior and the role of the environment as a determinant of behavior.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Sociology

The examination of societal conduct, the structure of societal relationships, the dynamics of social interaction, and the cultural aspects that permeate daily living.

Strong Power Networks

This term implies a constellation of entities or individuals interconnected in a way that allows them to wield considerable influence or control within a society, organization, or sector.