Agricultural Output Is a Large Part of Econland's GDP

question 106

Multiple Choice

Agricultural output is a large part of Econland's GDP. Particularly bad weather one year leads to an output that is smaller than normal, causing a shock to Econland's economy. Which of these correctly describes, from a Keynesian perspective, the impact of expansionary or contractionary monetary policy taken to address the situation?

• A) increase M1 to reduce inflation while having no impact on unemployment, or decrease M1 to reduce unemployment while having no impact on inflation
• B) increase M1 to reduce both inflation and unemployment, or reduce M1 to increase both inflation and unemployment
• C) increase M1 to reduce inflation while adding to unemployment, or decrease M1 to reduce unemployment while adding to inflation
• D) increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment

---

Definitions:

Study Group

A small assembly of individuals who gather to discuss and learn about a specific topic collectively.

Instructor Directly

Engaging or communicating with a teacher or trainer without intermediaries.

Math Courses

Academic programs or classes focused on the study of numbers, quantities, shapes, and patterns using algebra, calculus, geometry, and other mathematical theories and principles.

Personal Comments

Individual and subjective remarks or opinions offered by a person.