If the Central Bank Raises the Rate at Which It

question 79

Multiple Choice

If the central bank raises the rate at which it increases the money supply,then in the short run unemployment is

• A)above its natural rate.The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
• B)above its natural rate.The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.
• C)below its natural rate.The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
• D)below its natural rate.The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.

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Definitions:

Ruling Passion

A dominant inner force or motivation that shapes an individual's actions and life path, often driving their decisions and priorities.

Traits

Enduring characteristics that describe an individual's behavior across various situations.

Genetic Heritage

The biological attributes and characteristics passed down from previous generations to an individual.

Idiographic Approach

is a method in psychology focusing on the detailed study of the individual and the unique psychological mechanisms within one person.