An Unexpected Shift to a More Expansionary Monetary Policy Will

question 84

Multiple Choice

An unexpected shift to a more expansionary monetary policy will generally

• A) stimulate aggregate demand and real output as soon as the policy is instituted.
• B) exert its primary impact on aggregate demand and real output 6 to 15 months in the future.
• C) cause inflation in the short run, but expand real output in the long run.
• D) increase real interest rates in the short run.

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Definitions:

Two-Factor Theory

A theory by Frederick Herzberg that identifies motivation and hygiene factors as key to employee satisfaction and performance.

Work Outcomes

The results or outputs generated from the efforts and activities of employees or teams within an organization.

Good Performance

A measure of how well a task is executed or the success level of an endeavor or employee.

Expectancy

The probability that the amount of work effort invested by an individual will result in a high level of performance.