If the Unemployment Rate Falls Below Its Long-Run Level,which Policies

question 43

Multiple Choice

If the unemployment rate falls below its long-run level,which policies would be appropriate to stabilize output?

• A)increase the money supply,increase taxes
• B)increase the money supply,cut taxes
• C)decrease the money supply,increase taxes
• D)decrease the money supply,cut taxes

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Definitions:

Right Side

In accounting, typically refers to the credit side of a double entry bookkeeping system.

Asset Account

A financial account that tracks the value of assets owned by an individual, company, or entity.

Liability Account

A liability account records debts or obligations a company owes to others, appearing on the balance sheet.

Owner's Equity Account

An account on a company's balance sheet representing the owner's total interest in the business, after subtracting liabilities from assets.