1. Which of the following increases inflation and reduces unemployment in the short run?
|either an increase in government expenditures by itself or an increase in the money supply growth rate by itself|
|an increase in government expenditures, but not an increase in the money supply growth rate|
|an increase in the money supply growth rate, but not an increase in government expenditures|
|neither an increase in government expenditures nor an increase in the money supply|
|right, making inflation higher than otherwise.|
|right, making inflation lower than otherwise.|
|left, making inflation higher than otherwise.|
|left, making inflation lower than otherwise.|
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