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

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Definitions:

Positive Statement

An objective statement that can be tested or validated and is based on factual information.

Efficient Market

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Cogito Ergo Sum

A philosophical statement by René Descartes, which translates to "I think, therefore I am," used to demonstrate the existence of the self and consciousness.

Carpe Diem

A Latin aphorism usually translated as "seize the day," encouraging individuals to make the most of the present moment without concern for the future.