Suppose the economy currently has some underutilized resources. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to
A) increase aggregate demand, increase prices and increase real GDP.
B) increase short-run aggregate supply, decrease in prices and decrease in real GDP.
C) increase short-run aggregate supply, decrease prices and increase real GDP.
D) increase aggregate demand, increase prices and decrease real GDP.
A
You might also like to view...
Household production is more likely to occur when
a. it requires many specialized resources b. technology makes it more costly than market production c. tax avoidance is undesirable d. less control over the final product is desirable e. the opportunity cost of household work is relatively small
If the MRP of labor decreases, labor:
A. demand will decrease. B. demand will increase. C. supply will increase. D. supply will decrease.
A bank's return on assets (ROA) is calculated by dividing:
A. the bank's assets by its net worth. B. the bank's assets less its net profit after taxes by its net worth. C. the bank's net profits after taxes by its assets. D. the bank's net worth by its assets.
What is the main difference between the demand curves for the perfect competitor and the monopolist?
What will be an ideal response?