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:

Perpetual System

An inventory management system that tracks the addition and subtraction of inventory with each sale and purchase in real time, providing a high level of detail and accuracy.

FIFO Method

Stands for "First-In, First-Out," a method of inventory valuation where the first items purchased are the first ones sold.

Job Order Cost Accounting

A system used to assign manufacturing costs to an individual product or batches of products, typically in customized or non-repetitive manufacturing environments.

T Accounts

A visual representation used in accounting to depict the debit and credit sides of an account.