At Full Employment an Increase in the Quantity of Money

question 55

Multiple Choice

At full employment an increase in the quantity of money (ceteris paribus) can create a

• A)demand-pull inflation, as can an increase in government expenditure.
• B)demand-pull inflation, but an increase in government expenditure cannot.
• C)cost-push inflation, as can an increase in government expenditure.
• D)cost-push inflation, but an increase in government expenditure cannot.
• E)demand-pull and a cost-push inflation, as can an increase in government expenditure.

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Definitions:

Cooperative Strategies

Approaches that involve collaboration between different parties or organizations to achieve a common goal or mutual benefit.

Power Strategies

Tactics employed by individuals or groups to gain, maintain, or demonstrate power within a social, political, or organizational context.

Vulnerable Population

Groups of individuals who are at greater risk of suffering harm or injustice due to factors such as age, health, disability, economic status, or minority status.

Affirmative Action

A policy or a program designed to counter discrimination against minority groups and women in areas like employment and education.