The Long-Run Response to an Increase in the Growth Rate

question 37

Multiple Choice

The long-run response to an increase in the growth rate of the money supply is shown by shifting

• A)the short-run and long-run Phillips curves left.
• B)the short-run and long-run Phillips curves right.
• C)only the short-run Phillips curve left.
• D)only the short-run Phillips curve right.

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Definitions:

Mutually Beneficial Exchanges

Transactions that provide advantages or gains to all parties involved.

Comparative Advantage

The competence of a person, business, or nation to manufacture a product or provide a service with a lesser opportunity cost compared to rivals.