When the economy is operating at potential GDP, an unannounced decrease in the rate of growth of the money supply intended to reduce inflation will most likely lead to. lower inflation and:
A: a decrease in output in both the short run and the long run.
B: no change in output in both the short run and the long run.
C: a decrease in output in the short run, and lower inflation but no change in output in the long run.
A: a decrease in output in both the short run and the long run.
B: no change in output in both the short run and the long run.
C: a decrease in output in the short run, and lower inflation but no change in output in the long run.
举一反三
- "Diseconomies of scale" occur in ( ) A: the long run, but not the short run. B: the short run, but not the long run. C: both the short run and the long run. D: neither the short run nor the long run.
- Monetary policy affects employment A: only in the long run. B: only in the short run. C: in both the long run and the short run. D: in neither the long run nor the short run.
- Which of the following is accurate? A: Monetary policy is neutral in both the short run and the long run. B: Though monetary policy is neutral in the long run, it may have effects on real variables in the short run. C: Monetary policy has profound effects on real variables in both the short run and the long run. D: Monetary policy has profound effects on real variables in the long run, but is neutral in the short run.
- Which of the following is FALSE? A: in the long run, a central bank can effectively limit inflation B: in the long run, a central bank can do fairly little to stimulate real GDP C: in the long run, monetary policy has no effect on nominal GDP D: unless inflation is very high, stimulating the economy does more to enhance economic welfare than controlling inflation E: a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run
- Which of the following is a FALSE statement? A: the very long run focuses on the growth of productive capacity B: in the very long run, the productive capacity is assumed to be given C: in the very short run, shifts in aggregate demand determine how much output is produced D: fluctuations in the rates of inflation and unemployment are important long-run issues E: at the full-employment level of output, capital is not used 100 percent