Monetary Policy Affects Employment

question 19

Multiple Choice

Monetary policy affects employment

• A)only in the long run.
• B)only in the short run.
• C)in both the long run and the short run.
• D)in neither the long run nor the short run.

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Definitions:

Government Spending

The total amount of public funds that a government expends on various national and regional needs, including infrastructure, education, defense, and welfare.

Nondiscretionary Fiscal Policy

Government fiscal policies that are automatic stabilizers, such as taxation and welfare spending, which work without specific government intervention.

Automatic Stabilizers

Economic strategies and initiatives aimed at stabilizing a country's economic fluctuations without further action from the government or policy makers.

Built-in Stabilizer

Economic policies or instruments, like progressive taxation and welfare, that automatically reduce the amplitude of economic fluctuations without additional government intervention.