In the short-run macro model, an increase in the money supply will
a. move the economy to the right along the aggregate expenditure line.
b. move the economy to the left along the aggregate expenditure line.
c. shift the aggregate expenditure line upward.
d. shift the aggregate expenditure line downward.
e. cause the aggregate expenditure line to rotate until it is flat.
C
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Everything else equal, an appreciation of the dollar against the yuan:
A) will lead to a decrease in the quantity of dollars demanded. B) will lead to an increase in the quantity of dollars demanded. C) will not affect the quantity of dollars demanded. D) can either lead to an increase or a decrease in the quantity of dollars demanded depending on the magnitude of the appreciation.
Minimum wages:
A) benefit all workers. B) are usually set below equilibrium wages. C) can reduce wage rigidity. D) can increase unemployment.
In the long run, a firm in perfect completion will earn which of the following?
a. Economic loss b. Economic profit c. Zero economic profit d. Either economic loss or profit
Fixed exchange rates are fixed by
a. international speculators who manipulate the world's currencies. b. international demand and supply. c. national governments. d. All of the above are correct.