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:

Chronic Fatigue Syndrome

A complex disorder characterized by extreme fatigue that can't be explained by any underlying medical condition and is not relieved by rest.

Psychiatric Illness

A broad category of mental health disorders that affect mood, thinking, and behavior, requiring clinical diagnosis and treatment.

Behavioral Medicine

An interdisciplinary field combining both medicine and psychology to develop interventions for improving health and treating illness through behavioral changes.

Chronic Idiopathic Fatigue

A medical condition characterized by significant, long-term tiredness or fatigue that is not directly linked to any known cause.