Given an upward-sloping aggregate supply curve, attempts to reduce unemployment through monetary policy will aggravate current inflation as illustrated by a:
A. Leftward shift of aggregate demand.
B. Rightward shift of aggregate demand.
C. Leftward shift of aggregate supply.
D. Rightward shift of aggregate supply.
B. Rightward shift of aggregate demand.
Economics
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Which of the following decreases aggregate demand and shifts the AD curve leftward?
A) a tax cut B) an increase in quantity of money C) an interest rate hike D) a decrease in potential GDP E) an increase in government expenditures on goods and services
Economics
The opportunity cost of holding money is measured by the:
a. interest rate
b. liquidity lost by holding money.
c. money supply curve.
d. inflation rate.
e. cost of cashing in financial assets.
Economics