In the Short Run, Fiscal and Monetary Policy Cause Unemployment

question 86

Multiple Choice

In the short run, fiscal and monetary policy cause unemployment and inflation to move in opposite directions because

• A)the Fed and Congress rarely agree on policy.
• B)one controls aggregate demand, the other controls aggregate supply.
• C)both policies control only aggregate supply.
• D)both policies control only aggregate demand.

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Definitions:

Semantic Memory

A branch of long-term memory involved in the storage of factual information, concepts, and knowledge about the external world.

Retention

The ability to maintain or preserve information over time, critical to learning and memory processes in the brain.

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, leading to lasting symptoms of anxiety and distress.

Adaptive Neural Network

A neural network that can adjust its structure and function in response to changing information or environments, enhancing learning and decision-making processes.