Starting from the Natural Level of Output, an Unexpected Monetary

question 48

Multiple Choice

Starting from the natural level of output, an unexpected monetary contraction will cause output and the price level to
In the short run, and in the long run the expected price level will , causing the level of output to return to the natural level.

• A)increase; increase
• B)increase; decrease
• C)decrease; decrease
• D)decrease; increase

---

Definitions:

Congress

The legislative body of the United States government, composed of the House of Representatives and the Senate.

Lobbying Efforts

Actions aimed at influencing decisions made by officials in the government, often undertaken by individuals or groups through various methods of persuasion.

Notice-And-Comment Rulemaking

A regulatory process that requires agencies to publish proposed rules, accept public comments, and consider those comments before finalizing regulations.

Binding Legal Effect

The characteristic of a document, contract, or agreement that makes it legally enforceable by being properly executed according to the law.