Assume a Central Bank Follows a Rule That Requires It

question 23

Multiple Choice

Assume a central bank follows a rule that requires it to take steps to keep the price level constant.If the price level rose because of an increase in aggregate demand and a decrease in aggregate supply that kept output unchanged,then

• A)the central bank would have to decrease the money supply which would decrease output.
• B)the central bank would have to decrease the money supply which would increase output.
• C)the central bank would have to increase the money supply which would decrease output.
• D)the central bank would have to increase the money supply which would increase output.

---

Definitions:

Skilled Movements

Movements that require coordination and precision, often learned through practice, involving specific brain regions such as the cerebellum and motor cortex.

Unconscious Movements

Movements that occur without conscious intent or awareness, typically reflexive or automatic in nature.

Cerebellum

A part of the brain located at the back of the skull, predominantly involved in regulating motor movements and coordination.

Balance Impairment

A condition affecting one's stability and spatial orientation, often leading to difficulty in maintaining upright posture.