Question

The short-run tradeoff between inflation and unemployment implies that, in the short run, a. a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. b. an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. c. policymakers are able to reduce the inflation rate and, at the same time, reduce the unemployment rate. d. policymakers can influence the inflation rate, but not the unemployment rate.

Answer 1

A) A decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.

Step-by-step explanation:

The rate of unemployment and inflation is inversely related. This means when there is an increase in one, the other one automatically decreases. That is, when there is a decrease in unemployment, there is an increase in inflation. And when there is an increase in unemployment, there is a decrease in inflation. The rate of unemployment and the rate of inflation found in the Phillips e usually coincide with the GDP and price level of aggregate demand

Answer 2

a decrease in the growth rate in the quantity of money will be accompanied by an increase in the unemployment rate

Step-by-step explanation:

The short-run tradeoff between inflation and unemployment implies that, in the short run,

a. a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. b. an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. c. policymakers are able to reduce the inflation rate and, at the same time, reduce the unemployment rate. d. policymakers can influence the inflation rate, but not the unemployment rate.