The tradeoff between inflation and unemployment
A)implies that policies designed to reduce unemployment also reduce inflation.
B)was eliminated by improved economic policies in the 1900s.
C)is a long-run tradeoff,persisting for decades,according to most economists.
D)None of the above are correct.
Germany could have avoided the high inflation that it experienced in the 1920s by
A)not directing so many of its resources toward preparation for World War II.
B)not increasing taxes so much on the German middle class.
C)not allowing the quantity of money to increase so rapidly.
D)using government policies to stimulate the economy more so than what was done.
In the short run,which of the following is not correct?
A)Increasing the money supply increases the demand for goods and services.
B)Increasing the money supply encourages firms to hire more workers.
C)Lowering the money supply leads to a higher level of unemployment.
D)Policies that encourage higher employment will also induce a lower rate of inflation.
In response to the deep economic downturn in the US in 2008 and 2009,the US
B)increased government spending.
C)increased the supply of money.
D)All of the above are correct.