This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is a possible consequence if a contractionary monetary policy is adopted? ... (Read 56 times)

dbose

  • Hero Member
  • *****
  • Posts: 597
on: Jun 30, 2018
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.

Question 2

In what sense is frictional unemployment good for the economy?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nikmaaacs

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

Since frictional unemployment is the unemployment that exists so that workers and firms find the right matches, the economy needs some frictional unemployment to operate efficiently.


dbose

  • Member
  • Posts: 597
Reply 2 on: Jun 30, 2018
Gracias!

cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Democritus' atomist philosophy was later adopted by Epicurus (341–270 BCE). Democritus' atomist philosophy was later adopted by Epicurus (341–270 BCE).
environmental policy environmental policy
This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
Environmental policy Environmental policy
Government in America: People, Politics, and Policy, AP Government in America: People, Politics, and Policy, AP
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Video: Blood Flow through the Human Heart

For a complete list of videos, visit our video library