What happens to the aggregate demand curve when the Fed reduces the money supply?
a. It shifts leftward, lowering real GDP and the price level.
b. It shifts leftward, raising real GDP and the price level.
c. It shifts leftward, lowering real GDP but raising the price level.
d. It shifts rightward, raising real GDP and the price level.
e. It shifts rightward, lowering real GDP but raising the price level.
A
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The bulk of exports from non-industrial countries are
a. manufactured goods b. primary products c. agricultural goods d. natural resources e. raw sugar products
Which one of the following people is frictionally unemployed? A steel worker who
A) decides to leave the labour force and become a full-time ballet student. B) becomes discouraged and stops looking for a job. C) is laid off but expects to be called back soon. D) loses her job because of technological change. E) gives up her job because she retires.
If the Fed wants to maintain current interest rates, it would be buying government bonds in the open market when
A) the demand for money increases. B) investment demand decreases. C) the discount rate increases. D) the demand for money decreases.
All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase