Question 62 (1 point) Contrary to expectations, the Fed contracts the money supply. The short-run effect of the unexpected policy is shown by moving to the left along the short-run Phillips curve. moving to the right along the short-run Phillips curve. shifting the short-run Phillips curve to the right. shifting the short-run Phillips curve to the left. Question 60 (1 point) If there is an adverse supply shock and the Federal Reserve responds by increasing the growth rate of the money supply, then in the short run the Federal Reserve's action lowers both inflation and unemployment. Olowers inflation but raises unemployment. raises inflation but lowers unemployment. raises both inflation and unemployment Question 61 (1 point) Cardi B believes the Federal Reserve is "soft on unemployment." Joe Arpaio agrees with Cardi B and believes that a permanently higher money supply growth rate will lead to a permanent reduction in the unemployment rate. Joe's argument is consistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would not increase inflation consistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would increase inflation. inconsistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would not increase inflation inconsistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would increase inflation