Real GDP can rise at the same time money supply falls if:
a. velocity rises rapidly enough
b. velocity falls rapidly enough.
c. the price level rises rapidly enough.
d. either b. or c. occurs.
a
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Which of the following is the most likely cause of most recessions according to the new classical model?
a. a change in the money supply. b. an increase in taxation and government spending. c. a fall in expected profits. d. a rise in the price of oil. e. an unanticipated change in the money supply.
The supply of labor does not depend upon
a. the demand for labor b. the amount of wealth held by workers c. the size of the population d. alternative employment opportunities e. the location of the work place
If consumption increases,
A) the SRAS curve will shift rightward, which will push the price level up. B) the SRAS curve will shift leftward, which will push the price level up. C) the AD curve will shift leftward, which will push the price level down. D) the AD curve will shift rightward, which will push the price level up.
Interest rates are higher the
A) shorter the duration of the loan. B) greater the risk. C) larger the amount of the loan, holding other things constant. D) lower the inflation rate.