In the Long Run, What Are the Effects of a Decrease

question 153

Multiple Choice

In the long run, what are the effects of a decrease in the rate of growth of the money supply?

• A) It will increase inflation and shift the short-run Phillips curve right.
• B) It will increase inflation and shift the short-run Phillips curve left.
• C) It will decrease inflation and shift the short-run Philips curve right.
• D) It will decrease inflation and shift the short-run Phillips curve left.

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Definitions:

Short-Term Memory

The component of the memory system that is involved in the temporary storage of information, typically holding information for seconds to minutes before it is either forgotten or transferred to long-term memory.

Serial Process

A method of processing information where tasks are performed one after another in a sequence.

Brown-Peterson Task

A cognitive task used to study short-term memory by distracting participants with a task immediately after they are given information to remember, therefore testing their ability to maintain it in memory.

Short-Term Memory

The ability to keep a limited amount of data in an immediately accessible condition for a brief duration.