Suppose That the Money Supply Increases

question 20

Multiple Choice

Suppose that the money supply increases. In the short run, this increases prices according to

• A)both the short-run Phillips curve and the aggregate demand and aggregate supply model.
• B)neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
• C)the short-run Phillips curve, but not the aggregate demand and aggregate supply model.
• D)the aggregate demand and aggregate supply model but not the short-run Phillips curve.

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Definitions:

Economic Goals

Targets or objectives related to the financial health and economic policies of a nation, organization, or individual.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, workplace safety, and other employment terms.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Hybrid Social Venture

An enterprise that combines aspects of non-profit and for-profit models aiming to address social issues while generating revenue.