When the quantity of money supplied decreases, at a given price level
A) the aggregate demand curve shifts leftward.
B) the aggregate demand curve shifts rightward.
C) the economy moves along the aggregate demand curve.
D) the aggregate demand does not change.
Answer: A) the aggregate demand curve shifts leftward.
You might also like to view...
If the real gross domestic product (GDP) for the base year is $3 trillion, then the nominal gross domestic product (GDP) for that year is _____
a. ?$.03 trillion b. $0.3 trillion c. $3 trillion d. $30 trillion e. $300 trillion
Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level is equal to 95 at the end of the year, the real value of your savings is closest to
A. $1,900. B. $1,905. C. $2,105. D. $2,095.
Refer to the table below. To increase output from 33 to 66 units requires ________ extra employee-hour(s); to increase output from 66 to 99 units requires ________ extra employee-hour(s).OutputPer DayNumber ofEmployeeHours Per Day00331662994132716511
A. 2; 4 B. 1; 1 C. 2; 1 D. 1; 2
Which of the following situations would cause a period of stagflation at a later point in time?
a. a recessionary gap b. a reduction in investment spending c. an increase in technological development d. an inflationary gap