Which of the Following Implies That an Increase in the Money

question 93

Multiple Choice

Which of the following implies that an increase in the money supply growth rate permanently changes the unemployment rate?

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

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Definitions:

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund various public expenditures.

Marginal Social Benefit

An additional gain to society derived from consuming or producing another unit of a good or service.

Marginal Social Cost

An increased charge to the general public for the creation of one more unit of a product or service.

Pollution

The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.