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:

Reasonable Notice

The advance warning an employer must give an employee before terminating their employment, which is often determined by law or contract.

Length of Service

The duration of time an individual has been employed by an organization.

Probation Period

A trial period at the beginning of employment during which an employee's suitability for the position is assessed.