In the long run, holding all else constant, inflation requires a ...

[Lobcity]

In the long run, holding all else constant, inflation requires a decrease in the money supply relative to the output of goods and servicesnot enough money chasing too many goods.
 
  Indicate whether the statement is true or false

Question 2

The most significant cost to a central bank of reducing unemployment is the costs
 
  a. incurred by printing and distributing new money.
  b. of lower output.
  c. of higher real wages.
  d. of inflation.

[daiying98]

Answer to Question 1

False

Answer to Question 2

D