Which of the Following Results in Higher Inflation and Higher

question 60

Multiple Choice

Which of the following results in higher inflation and higher unemployment in the short run?

• A)a more expansionary monetary policy
• B)a more contractionary monetary policy
• C)a decrease in the minimum wage
• D)an adverse supply shock such as an increase in the price of oil

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Definitions:

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Force

The exertion of power or influence to make someone or something act or move in a certain way, often used within the context of achieving objectives.

Coercive Leadership

A leadership approach where power and control are utilized to enforce obedience, often through the use of threats or punishment.

Extreme Behaviors

Actions or responses that are significantly outside the normal range, often with potential consequences or impacts.