If the central bank increases the money supply, then in the short run prices   rise and unemployment falls. fall and unemployment rises. and unemployment rise. and unemployment fall.

I keep getting the graph wrong, this is my last attempt to try to get most of the problem right

FILL IN THE BLANKS    Inflation measures the changes in the level of               in the economy. Demand-pull inflation is caused by a                shift in the aggregate demand curve, while cost-push inflation is caused by a              shift of the aggregate supply curve. When the price level is increasing by an extremely high rate, the economy is said to be experiencing                .  Stagflation occurs when the economy is experiencing high inflation, high unemployment, and low                    at the same time. To combat inflation, the government can use contractionary monetary policy which will also lead to                  interest rates. Note, however, that there is a short-run tradeoff between inflation and                 as illustrated by the Philips Curve. Inflation is stable when the unemployment rate is equal to the                     rate of unemployment.

When the money market is drawn with the value of money on the vertical axis, an increase in the money supply shifts the money supply curve to the a) right, lowering the price level. b) left, raising the price level. c) right, raising the price level. d) lefi, lowering the price level.

The quantity theory of money is the proposition that​ _______.

Suppose the economy is currently in equilibrium, with unemployment equal to the natural rate, and that people form expectations rationally. If the Federal Reserve announces that it is going to decrease the money supply, then: the economy will move to a lower price level but remain at potential GDP. the economy will permanently move to a higher level of output and a higher price level. the economy will permanently move to a lower level of output and a lower price level. the economy will move to a higher GDP level but remain at a constant price level.

Suppose there is an increase in money supply, as a result interest rates will Multiple Choice rise and the quantity of money will increases. fall and the quantity of money will remain constant. rise and the quantity of money will decrease. fall and the quantity of money will increases.

Complete the sentences with the correct term. Some options can be used more than once, and some may not be used at all. For the blanks use the answer bank. Cost‑push inflation occurs when                                          decreases until equilibrium output falls below the full employment level.As a result, the                                          increases. One possible cause of cost‑push inflation is an increase in                                          . To combat falling aggregate output, the government may introduce policies to increase                                          to where it and short‑run aggregate supply intersect                                          at the same point.These policies cause                                           to return to its full employment level,and the                                          increases even further.

Which of the following will most likely cause a decrease in the quantity of money demanded? Group of answer choices an increase in the interest rate an increase in the price level an increase in nominal aggregate output a decrease in the interest rate

If the quantity of money grows at 10 percent a year, the velocity of circulation is constant, and potential GDP grows at 5 percent a year, what is the inflation rate in the long run? The inflation rate in the long run is percent a year.