Monetary Authorities Might Attempt to Minimize the Impact of the Strategic

question 59

Multiple Choice

Monetary authorities might attempt to minimize the impact of the strategic input price increases on unemployment by

• A) doing nothing because unemployment is unchanged.
• B) increasing the money supply to shift aggregate demand to AD₁.
• C) increasing the money supply to shift aggregate supply to AS₂.
• D) decreasing the money supply to shift aggregate supply to AS₁.
• E) decreasing the money supply to shift aggregate demand back to AD₀.

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Definitions:

Unconscious Thoughts

Relates to ideas, memories, and desires that are outside of conscious awareness but can influence behavior and emotions.

Brain Damage

Physical harm to the brain that can result from injury, illnesses, or conditions, often leading to temporary or permanent impairment of cognitive, physical, and psychological functions.

Adaptive Functions

Adaptive functions are behaviors or traits that have evolved through natural selection because they increase the survival or reproductive success of an organism.

Behavior Tendencies

Patterns or inclinations in actions and reactions of individuals, often influenced by external and internal factors.