The short-run effects of a monetary "tightening" are ________ output,_________ unemployment,and _________ inflation.
A) lower;unchanged;higher
B) lower;lower;lower
C) lower;higher;no change in
D) higher;lower;lower
E) unchanged;higher;no change in

Question

Quizplus · Accepted Answer

Monetary tightening typically reduces output and increases unemployment in the short run, while inflation may not change immediately.

The Short-Run Effects of a Monetary "Tightening" Are ________ Output,_________

The Short-Run Effects of a Monetary "Tightening" Are Output,_