A Central Bank Sets Out to Reduce Unemployment by Changing

question 69

Multiple Choice

A central bank sets out to reduce unemployment by changing the money supply growth rate.The long-run Phillips curve shows that in comparison to their original rates,this policy will eventually lead to

• A)an increase in both the inflation rate and the unemployment rate.
• B)an increase in the inflation rate and a reduction in the unemployment rate.
• C)no change in either the inflation rate or the unemployment rate.
• D)an increase in the inflation rate and no change in the unemployment rate.

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Definitions:

Body Position

Refers to the orientation or alignment of the body in space, often considered in relation to posture, movement, or the positioning for a specific task or activity.

Specificity Theory

A theory in pain perception suggesting that specific pain receptors transmit signals to specific brain areas directly related to the sensation of pain.

Saccharine

An artificial sweetener with a sweetness many times that of sugar, often used as a sugar substitute in foods and drinks.

Neuron Type

A classification of neurons, the nerve cells in the brain and nervous system, distinguished by function, structure, or neurotransmitter.