The Pushing-On-A-String Analogy Makes the Point That Monetary Policy May

question 223

Multiple Choice

The pushing-on-a-string analogy makes the point that monetary policy may be better at

• A) controlling demand-pull inflation than cost-push inflation.
• B) pulling the aggregate demand curve leftward than pushing it rightward.
• C) pulling the unemployment rate downward than pushing the economic growth rate upward.
• D) keeping rapid inflation from occurring than reducing it once it has begun.

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Definitions:

Seawater

The saltwater that makes up the oceans and seas covering more than 70% of the Earth's surface, comprising a complex solution of various salts and minerals.

Mid-Ocean Ridge

A subaquatic chain of mountains created by the movement of tectonic plates, leading to the formation of new ocean floor.

Decompression

The reduction of pressure around a body, often used in contexts related to diving or escaping from high-pressure environments.

Melting Mantle

The process by which mantle rock heats and begins to liquify, often leading to volcanic activity.