In the Short Run, an Increase in the Money Supply

question 114

Multiple Choice

In the short run, an increase in the money supply is likely to lead to

• A)lower unemployment and lower inflation.
• B)lower unemployment and higher inflation.
• C)higher unemployment and lower inflation.
• D)higher unemployment and higher inflation.

---

Definitions:

Economic Disruption

A significant disturbance to the normal functions of an economy caused by external or internal events.

Labor Union Membership

The status of workers who belong to an organization that represents their collective interests in negotiations with employers regarding wages, hours, benefits, and working conditions.

Labor Force

All the non-institutionalized, working-age individuals who are employed or actively seeking employment.

Right-to-Work Laws

Right-to-work laws are statutes in some U.S. states that prohibit union security agreements between companies and workers' unions, ensuring that employment is not conditioned on union membership or related fees.