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 100 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
Great answer, keep it coming :)

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Democritus' atomist philosophy was later adopted by Epicurus (341–270 BCE). Democritus' atomist philosophy was later adopted by Epicurus (341–270 BCE).
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
In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th
Ecosystem goods and services and monetary values Ecosystem goods and services and monetary values
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Types of policy Types of policy
Video: Introduction to Cystic Fibrosis

For a complete list of videos, visit our video library