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