A Central Bank Sets Out to Reduce Unemployment by Changing

question 69

Multiple Choice

A central bank sets out to reduce unemployment by changing the money supply growth rate.The long-run Phillips curve shows that in comparison to their original rates,this policy will eventually lead to

• A)an increase in both the inflation rate and the unemployment rate.
• B)an increase in the inflation rate and a reduction in the unemployment rate.
• C)no change in either the inflation rate or the unemployment rate.
• D)an increase in the inflation rate and no change in the unemployment rate.

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Definitions:

Photoreceptors

Specialized cells in the retina of the eye that respond to light, enabling vision.

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain, playing a crucial role in the sense of sight.

Color Blindness

A condition where a person is unable to distinguish between certain colors, typically red and green, due to a lack of cone cells in the eye.

Red-Green Color Blindness

A common form of color vision deficiency where individuals have difficulty distinguishing between red and green hues.