In the aggregate demand-aggregate supply model in the short run, an increase in the money supply will lead to a(n):
a. increase in both the price level and real GDP
b. decrease in both the price level and real GDP.
c. increase in real GDP and a decrease in the price level.
d. decrease in real GDP and an increase in the price level.
e. increase in the price level only.
a
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The Federal funds market is a market for trading funds between
A) a bank and a multinational corporation. B) a bank and the government. C) a bank and another bank. D) a bank and the Federal Reserve Bank.
In a situation of excess supply in the labor market, there are:
a. many applicants for every job opening; employers will have an incentive to offer lower wages than they otherwise would have. b. few applicants for every job opening; employers will have an incentive to offer lower wages than they otherwise would have. c. many applicants for every job opening; employers will have an incentive to offer higher wages than they otherwise would have. d. few applicants for every job opening; employers will have an incentive to offer higher wages than they otherwise would have.
The United States has the least income inequality of all the nations in the world.
Answer the following statement true (T) or false (F)
In response to an increase in the wage rate, the income effect will usually cause a person to
A) supply fewer hours of labor. B) supply more hours of labor. C) supply the same hours of labor. D) have a horizontal labor supply curve.