Monetary Policy in Southland

question 234

Multiple Choice

Monetary Policy in Southland
In Southland the Department of Finance is responsible for monetary policy. Southland has had an inflation rate of 25% for many years.
-Refer to Monetary Policy in Southland. Suppose that the Southland Department of Finance undertakes a public relations campaign to convince people that it will soon change monetary policy to reduce inflation to 12.5%. If Southlanders believe their government then which, if any, curve(s) shift left?

• A)the short-run and the long-run Phillips curve
• B)the short-run but not the long run Phillips curve
• C)the long-run but not the short-run Phillips curve
• D)neither the short-run nor the long-run Phillips curve

---

Definitions:

IFRS Rules

A specific set of standards and guidelines established under the IFRS framework for financial reporting and accounting.

Classified Balance Sheet

A classified balance sheet presents the assets, liabilities, and equity of a company in clearly defined categories, making it easier to understand the company's financial position.

Interperiod Tax Allocation

The process of distributing income tax expenses or benefits over different accounting periods to match taxes with the revenues they relate to.

Intraperiod Tax Allocation

The apportionment of income taxes within a financial reporting period to different components of net income and other comprehensive income.