Suppose the economy currently has some underutilized resources. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to
A. increase short-run aggregate supply, decrease prices and increase real GDP.
B. increase aggregate demand, increase prices and increase real GDP.
C. increase short-run aggregate supply, decrease in prices and decrease in real GDP.
D. increase aggregate demand, increase prices and decrease real GDP.
Answer: B
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In the above figure, which of the figures show(s) a relationships between x and y with a positive slope?
A) Figure D only B) Figure A and Figure B C) Figure C only D) Figure B and Figure C E) Figure A and Figure D
Professor Smith completed a study that showed that 60 percent of all the students who graduated from her college purchased new cars. What might explain this?
Bottlenecks may force competitors to offer services within the same network.
Answer the following statement true (T) or false (F)
Figure 10-2
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. At its profit-maximizing level of output, the firm's short-run TC is represented by area
a.
ADFO.
b.
BGHC.
c.
BGIO.
d.
ADGIO.