According to the globalized AS/AD model, expansionary monetary policy shifts the AD curve to the right and:
A. shifts potential output to the right.
B. has no effect on goods inflation.
C. increases goods inflation.
D. shifts potential output to the left.
Answer: B
You might also like to view...
The common term for a severe recession is a
A) bottoming out. B) economic adjustment. C) depression. D) downturn.
How does deflation affect those with debt?
What will be an ideal response?
Suppose you own a store that sells top-of-the-line MP3 players. You have determined that the demand function for your MP3 players is Qd = D(P) = 1200 - 4P. At what price would you sell the MP3 players if you wanted to sell 100 of them?
A. $250 B. $275 C. $280 D. $300
A contractionary monetary policy leads to higher interest rates that discourage consumer borrowing for big-ticket items, such as houses and cars
a. True b. False Indicate whether the statement is true or false