Which One of the Following Statements Is the Most Accurate

question 5

Multiple Choice

Which one of the following statements is the most accurate?

• A) Over time, the inflationary pressure that follows a temporary money supply expansion pushes the price level to its long-run value and returns the economy to full employment.
• B) Over time, the inflationary pressure that follows a permanent money supply expansion pushes the price level to its long-run value and returns the economy to full employment.
• C) Over time, the inflationary pressure that follows a temporary money supply expansion pushes the price level to its long-run value, but leaves the economy in a state of artificially low employment.
• D) Over time, the inflationary pressure that follows a permanent money supply expansion pushes the price level to its long-run value, but leaves the economy in a state of artificially low employment.
• E) Over time, the inflationary pressure that follows a permanent money supply expansion pushes the price level beyond its long-run value and lower the level of employment.

---

Definitions:

Psychologists

Professionals who study and practice in the field of psychology, the scientific study of the mind and behavior.

Colleges and Universities

Institutions of higher education that offer undergraduate and postgraduate degrees in various fields.

Percentage

A way to express a number as a part of a whole out of 100.

Textbook's Definition

The explanation or description of a concept as given in a textbook, often considered a standard or authoritative source.