Which of the following is a possible consequence if a contractionary monetary policy is adopted?
A) The demand for labor will increase.
B) The aggregate price level will rise.
C) Real output will increase if nominal wages are fixed.
D) Real wages will increase if nominal wages are fixed.
D
Economics
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A federal budget deficit
a. occurs when government expenditures exceed tax revenues. b. occurs when monetary policy works in the opposite direction of fiscal policy. c. occurs when tax revenues exceed government expenditures. d. occurs when transfer payments exceed tax revenues. e. will always result when Congress and the president cannot agree on expenditures.
Economics
Refer to the graph shown. The economy is in a short-run equilibrium at:
A. point A. B. point B. C. point C. D. no point in the graph.
Economics