Which of the Following Increases Inflation and Reduces Unemployment in the Short

question 84

Multiple Choice

Which of the following increases inflation and reduces unemployment in the short run?

• A)either an increase in government expenditures by itself or an increase in the money supply growth rate by itself
• B)an increase in government expenditures,but not an increase in the money supply growth rate
• C)an increase in the money supply growth rate,but not an increase in government expenditures
• D)neither an increase in government expenditures nor an increase in the money supply

---

Definitions:

Working-Class Life

The everyday conditions and culture of those employed in lower-tier jobs, often involving manual labor, and generally characterized by lower income and limited access to resources.

Health Insurance

A form of insurance that covers the whole or part of the risk of a person incurring medical expenses, spreading the risk over a large number of persons.

Accident Insurance

A form of insurance that provides compensation and support to individuals in case of physical injury or death resulting from accidental events.

British Poor Law

Legislation enacted in the UK during the 19th century aimed at providing relief for the impoverished and regulating the conditions of workhouses where the poor were housed.