Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A) the unemployment rate will be larger than the rate before the contractionary monetary policy.
B) the unemployment rate will be smaller than the rate before the expansionary monetary policy.
C) the unemployment rate will be the same rate as before the expansionary monetary policy.
D) the unemployment rate can increase or decrease depending upon how much the LRAS will shift.
A
Economics
You might also like to view...
The policy of comparable worth has been more successful in the public sector than in the private sector
a. True b. False Indicate whether the statement is true or false
Economics
All of the following are barriers to entry in an industry EXCEPT
A) a patent. B) governmental restrictions. C) low marginal tax rates. D) economies of scale.
Economics