Assume an economy is operating at full employment and that the central bank announces a decrease in the growth rate of the money supply to reduce inflation, which market participants do not believe is credible. In the short run, are the directions of the impacts on employment and inflation the same or different, and in the long run, are the directions of the impacts on employment and inflation the same or different Short run: Long run: Employment and inflation effects Employment and inflation effects()①A. Same Same ②B. Same Different ③C. DifferentSame
A. ①
B. ②
C. ③