For an economy at full employment, an increase in the quantity of money will lead to which of the following sequences of shifts in aggregate demand and supply curves? aggregate supply aggregate supply aggregate supply
A) decreased aggregate demand, increased short-run aggregate supply, constant long-run aggregate supply
B) decreased aggregate demand, decreased short-run aggregate supply, decreased long-run aggregate supply
C) increased aggregate demand, increased short-run aggregate supply, increased long-run aggregate supply
D) increased aggregate demand, decreased short-run aggregate supply, constant long-run aggregate supply
Answer: D) increased aggregate demand, decreased short-run aggregate supply, constant long-run aggregate supply
You might also like to view...
Full-employment output is also called
A) potential output. B) national output. C) natural output. D) target output.
A major advantage of the corporate form of business organization is the limited personal liability of the owners
a. True b. False
The discount rate is the interest ________.
A. rate at which commercial banks lend to the public B. rate at which the central banks lend to the U.S. Treasury C. rate at which the Federal Reserve Banks lend to commercial banks D. yield on long-term government bonds
The period between the implementation of a policy and its intended result is known as
A. the recognition time lag. B. the political action lag. C. the data lag. D. the effect time lag.