When Monetary and Fiscal Policymakers Expand Aggregate Demand,which of the Following

question 4

Multiple Choice

When monetary and fiscal policymakers expand aggregate demand,which of the following costs is incurred in the short run?

• A)Short-run aggregate supply decreases.
• B)The natural rate of unemployment increases.
• C)The price level increases more rapidly.
• D)The money supply increases less rapidly.

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Definitions:

Neurotransmitter

Chemical substances in the brain that transmit signals from one neuron to another, influencing various functions such as mood, memory, and movement.

Synapse

The junction between two neurons or between a neuron and a muscle where neurotransmitters are released to transmit impulses.

Synapse

The junction between two neurons or between a neuron and a muscle where impulses pass by diffusion of a neurotransmitter.

Postsynaptic Membrane

The postsynaptic membrane is the region of a neuron that receives neurotransmitters from another neuron across the synaptic gap, playing a crucial role in neuron-to-neuron communication.