Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases
a. the inflation rate and the nominal interest rate by the same number of percentage points.
b. nominal interest rates but by less than the percentage point increase in the inflation rate.
c. the inflation rate but not the nominal interest.
d. neither the inflation rate nor the nominal interest rate.
a
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Jack was unemployed two weeks ago but just started a new job. As a result of this increase in the number of employed workers, which of the following occurred?
A) The labor force participation rate increased. B) The unemployment rate decreased. C) The unemployment rate increased. D) The labor force participation rate decreased.
Which of the following will cause the long-run aggregate supply curve to shift? I. Changes in technology II. Changes in government spending III. Changes in the money supply
A) I only B) II only C) I, II, and III D) only I and II