A positive temporary supply side shock will:
A. increase the level of potential output in the long run.
B. decrease the price level in the long run.
C. increase the price level in the long run.
D. have no effect in the long run.
Answer: D
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The probably effect of introducing an increased number of automatic teller machines is to
A) increase money demand, shifting the LM curve up and to the left. B) increase money demand, shifting the LM curve down and to the right. C) decrease money demand, shifting the LM curve up and to the left. D) decrease money demand, shifting the LM curve down and to the right.
On which type of unemployment can monetary policy have the most effect? Why?
What will be an ideal response?
_________ rights refer to the range of laws, rules, and regulations that define rights for the use and transfer of resources.
A) Individual B) Constitutional C) Property D) Economic E) none of the above
Cross-price elasticity looks at the impact that income changes have on sales.
Answer the following statement true (T) or false (F)