In the Short Run, Which of the Following Is Not

question 122

Multiple Choice

In the short run, which of the following is not correct?

• A)Increasing the money supply increases the demand for goods and services.
• B)Increasing the money supply encourages firms to hire more workers.
• C)Lowering the money supply leads to a higher level of unemployment.
• D)Policies that encourage higher employment will also induce a lower rate of inflation.

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Definitions:

Sucking Reflex

An automatic response in infants that prompts them to suck on anything that touches the roof of their mouth, aiding in breastfeeding or bottle-feeding.

Thermostability

The ability of a substance or chemical compound to remain stable or unchanged when exposed to changes in temperature.

Hemolytic Disease

A condition where red blood cells are destroyed faster than they can be made, often caused by an immune response or inherited disorders.