New Classical Economists Contend That an Unexpected Increase in the Money

question 72

Multiple Choice

New classical economists contend that an unexpected increase in the money supply will:

• A)increase the unemployment rate in the short run.
• B)reduce the unemployment rate in the short run.
• C)cause no short-run change in the unemployment rate.
• D)reduce the unemployment rate in the long run.
• E)increase the unemployment rate in the long run.

---

Definitions:

Megawatts

A unit of power equal to one million watts, often used to describe the output capacity of power plants or the amount of electricity required by large entities.

Rent-Seeking Behavior

Actions by individuals or companies to increase their own wealth without creating new wealth or value, often through manipulating the environment in which economic activities occur.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses them for expenses incurred from illness or injury.

Net Social Cost

The comprehensive expense to the community for the production of one more unit of an item, encompassing both personal expenses and external factors.