If a Country's Policy Makers Were to Continuously Use Expansionary

question 13

Multiple Choice

If a country's policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate, the long-run result would be

• A) an increase in the level of output.
• B) a decrease in the unemployment rate.
• C) an increase in the rate of inflation.
• D) all of these answers.

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Definitions:

Employer

An individual or entity that hires and pays for the services of employees.

Religious Accommodation

Arrangements made by an employer so that employees can do their jobs and practise their faith at the same time.

Christian Presence

The existence or participation of Christian beliefs, practices, or influences in a specific area or social context.

Media Attention

The focus or coverage that media outlets give to specific events, individuals, or topics.