Which of the Following Results in Higher Inflation and Higher

question 60

Multiple Choice

Which of the following results in higher inflation and higher unemployment in the short run?

• A)a more expansionary monetary policy
• B)a more contractionary monetary policy
• C)a decrease in the minimum wage
• D)an adverse supply shock such as an increase in the price of oil

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Definitions:

FTC

The Federal Trade Commission, a U.S. federal agency tasked with protecting consumers and promoting competition.

Consumer Financial Protection Bureau

A regulatory agency in the United States tasked with ensuring consumers are treated fairly by banks, lenders, and other financial companies.

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy and regulating its banking institutions.

Deception

The act of misleading or tricking someone in order to gain an advantage or cause harm.