A Central Bank Sets Out to Reduce Unemployment by Changing

question 69

Multiple Choice

A central bank sets out to reduce unemployment by changing the money supply growth rate.The long-run Phillips curve shows that in comparison to their original rates,this policy will eventually lead to

• A)an increase in both the inflation rate and the unemployment rate.
• B)an increase in the inflation rate and a reduction in the unemployment rate.
• C)no change in either the inflation rate or the unemployment rate.
• D)an increase in the inflation rate and no change in the unemployment rate.

Understand the goal of firms to maximize total revenue.

Understand the distinction between System I and System II thinking as it applies to human reasoning and decision-making.

Identify and explain the phenomenon of confirmation bias in hypothesis testing and reasoning.

Comprehend the structure and implications of syllogistic reasoning in logical thinking.