Suppose that the money supply increases. In the short run, this increases prices according to
a. both the short-run Phillips curve and the aggregate demand and aggregate supply model.
b. neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
c. the short-run Phillips curve, but not according to the aggregate demand and aggregate supply model.
d. the aggregate demand and aggregate supply model but not according to the short-run Phillips curve.
a
You might also like to view...
As interest rates rise, the opportunity cost of holding money ________ and the demand for money ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
Assume 300 billion pounds of Ostrich meat is produced per year when the price is 50 cents per pound, and 500 billion pounds when the price is 60 cents per pound. The supply of Ostrich meat, other factors held constant, is:
a. price elastic. b. price inelastic. c. income elastic. d. income inelastic.
The supply curve of a producer, whose costs vary continuosly with output will be:
a. a straight line vertical to the output axis. b. a straight line horizontal to the output axis. c. the positively sloped portion of the marginal cost curve. d. the negatively sloped portion of the marginal cost curve.
The vertical axis of the aggregate demand-aggregate supply model measures the amount of
a. total employment. b. total final output. c. the price level. d. net exports.