Monetary policy affects employment Group of answer choices in neither the long run nor the short...
Monetary policy affects employment
Group of answer choices
in neither the long run nor the short run.
in both the long run and the short run.
only in the long run.
only in the short run.
Homework Answers
Answer: only in the short run
In the long-run all factors of production (like land, labor, capital, and organization) are in the full-employment level. Therefore, a monetary policy (like lowering the interest rates, discount rate, and selling/purchasing bonds) can’t affect employment there.
Since in the short-run, the full-employment level is not yet achieved, an expansionary monetary policy can increase inflation and employment.
Add Answer to:
Monetary policy affects employment
Group of answer choices
in neither the long run nor the short...
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the...
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the short-run nor long-run aggregate supply changes. short-run aggregate supply decreases while neither aggregate demand nor long-run aggregate supply changes. the equilibrium level of real GDP is greater than potential GDP. the equilibrium level of real GDP is less than potential GDP. 2. Which of the following shifts the aggregate demand curve rightward? Group of answer choices a decrease in consumption an increase in investment...
1. Monetary neutrality is a characteristic of the aggregate demand-aggregate supply model in: the long run,...
1. Monetary neutrality is a characteristic of the aggregate demand-aggregate supply model in: the long run, but not in the short run. the short run, but not in the long run. both the short run and the long run. neither the short run nor the long run.
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Both monetary policy and fiscal policy affect aggregate demand. Group of answer choices True False
An economy is initially at potential output, in the long run, expansionary monetary policy is expected:...
An economy is initially at potential output, in the long run, expansionary monetary policy is expected: a) not to affect output in the long run b) not to affect output in either the short run or the long run c) to affect output, but only in the long run d) to affect output in both the short run and the long run Which of the following monetary policies likely decreases aggregate demand and, in the short run, output? a) A...
Discuss how monetary policy (e.g. stimulative or restrictive policy) affects the short-term and long-term rates, respectively,...
Discuss how monetary policy (e.g. stimulative or restrictive policy) affects the short-term and long-term rates, respectively, and thus the yield curves.
Which statement best characterizes the effects of monetary policy? Monetary policy is neutral in both the...
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Consider the impact of monetary policy over time. In the short run, adjust. In the long run, prices adjust ---- prices some; some some; all all; all all: some
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16. Which statement best characterizes the effects of monetary policy? (1 mark) a. Monetary policy is neutral in both the short run and the long run; therefore, it does not affect real variables. b. Monetary policy is neutral in the long run, but 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...
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11. Monetary policy affects which of the following variables in the long run? the rate of unemployment the level of output the real interest rate the rate of inflation all of the above 12. There are how many members of the Board of Governors in the Federal Reserve system? 12 none of the above 7 15 4 13. There are how many members of the Federal Open Market Committee? 12 14 5 15 7 14. Which of the following would...
1. Monetary neutrality is a characteristic of the aggregate demand-aggregate supply model in: the long run, but not in the short run. the short run, but not in the long run. both the short run and the long run. neither the short run nor the long run.
Consider the impact of monetary policy over time. In the short run, adjust. In the long run, prices adjust ---- prices some; some some; all all; all all: some
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