An increase in aggregate demand in the long run will most likely result in:
a. a decrease in price and output levels
b. an increase in price and output levels.
c. an increase in the price level and a decrease in output.
d. a decrease in the price level and an increase in output.
e. an increase in the price level but no change in output.
e
You might also like to view...
If real output and velocity are stable and predictable, then the equation of exchange can be used to derive a simple relationship between: a. the money supply and the price level
b. the money supply and the interest rate. c. the money supply and the foreign exchange rate. d. unemployment and aggregate demand. e. unemployment and nominal GDP.
The major protection against sudden mass attempt to withdraw cash from banks is the:
a. Federal Reserve. b. Consumer Protection Act. c. deposit insurance provided by the FDIC. d. gold and silver backing the dollar.
Which has a greater impact on expanding aggregate demand?
The ambitious plan to wean American agriculture from subsidies, as embodied in the Freedom to Farm Act of 1996:
A. Became fully realized by 2000 B. Unraveled in 1998 and 1999 when farm prices fell C. Was not approved by the President D. Was extended in 2002