In the Short Run, Which of the Following Is the Most

question 186

Multiple Choice

In the short run, which of the following is the most likely effect of an unanticipated move to expansionary monetary policy?

• A) an increase in real output
• B) a decrease in real output
• C) an improvement in technology, which will stimulate growth in the long run
• D) an increase in prices proportional to the increase in the money supply

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Definitions:

Agricultural South

Refers to the region in the United States where agriculture, particularly the cultivation of crops like cotton and tobacco, was the dominant economic activity, especially in the period before the Civil War.

African Americans

A racial or ethnic group in the United States with ancestry primarily from sub-Saharan Africa.

Urban Life

Refers to the characteristics, lifestyle, and culture found in cities, including high population density, diverse social dynamics, and distinct architectural and infrastructural features.

Urban Political Machine

A political organization in which an authoritative boss or small group commands the support of a corps of supporters and businesses, usually in exchange for rewards.