Using Monetary Policy to Help Eliminate an Inflationary Gap

question 18

Multiple Choice

Using monetary policy to help eliminate an inflationary gap

• A) shifts the aggregate supply curve to the right.
• B) is ineffective if the short-run aggregate supply curve is very steep.
• C) leads to an increase in unemployment, at least temporarily.
• D) produces a permanent increase in the price level.
• E) is futile unless fiscal policy simultaneously creates a budget surplus.

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Definitions:

Multiperson Comparison

An appraisal method that evaluates and compares the performance of employees against each other to establish rankings.

Performance Classifications

The categorization of employee or organizational performance levels, typically used to assess, compare, and manage productivity and outcomes.

Merit Pay System

A compensation strategy that rewards employees based on their performance, as assessed through appraisals or achievements.

Assessing The Performance

The process of evaluating the efficiency, effectiveness, and productivity of an individual or organization's work.