-Refer to the Above Figure

question 98

Multiple Choice

-Refer to the above figure. Unexpected expansionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run

• A) the unemployment rate will be the same rate as before the expansionary monetary policy.
• B) the unemployment rate will be larger than the rate before the expansionary monetary policy.
• C) the unemployment rate will be smaller than the rate before the expansionary monetary policy.
• D) the unemployment rate can increase or decrease depending upon how much the LRAS will shift.

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Definitions:

Bad News

Information that is unwelcome, disappointing, or negative, often requiring careful communication.

Message Shortness

The characteristic of conveying information in a brief and concise manner.

Audience Shock

A reaction from the audience that occurs when they are presented with unexpected, surprising, or shocking information or content.

Direct Approach

A communication method where the main point or important information is presented at the beginning.