If the Central Bank Raises the Rate at Which It

question 79

Multiple Choice

If the central bank raises the rate at which it increases the money supply,then in the short run unemployment is

• A)above its natural rate.The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
• B)above its natural rate.The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.
• C)below its natural rate.The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
• D)below its natural rate.The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.

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Definitions:

Machining Department

A division within a manufacturing facility where machining processes such as cutting, shaping, and finishing of materials are carried out.

Volume Based Cost Drivers

Factors that cause the costs of an activity to increase or decrease with changes in the volume of production or services provided.

Labour Intensive

A process or industry that requires a large amount of manual labor relative to capital or machine usage.

Cost Driver

A factor that causes a change in the cost of an activity, directly affecting the cost of production or operations.