According to the model of aggregate supply and aggregate demand, in the long run, an increase in the money supply should cause
A. prices to rise and output to remain unchanged.
B. prices to fall and output to fall.
C. prices to rise and output to rise.
D. prices to fall and output to remain unchanged.
Answer: A. prices to rise and output to remain unchanged.
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The U.S. economy rarely grows.
Answer the following statement true (T) or false (F)
Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new long-run equilibrium is given by point
A) A. B) B. C) C. D) D.
To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt
A) wealth B) income C) money D) credit
In the 1980s, some states in the United States had significantly more bank failures than other states. What industries did the former states depend on heavily?
a. Oil and agriculture b. Tourism c. Defense and aeronautics d. Construction and textiles e. The computer industry