If the Fed decreases the money supply,
a. aggregate demand and aggregate supply both increase.
b. aggregate demand increases, which leads to movement along the short-run aggregate supply curve.
c. aggregate demand decreases, which leads to movement along the short-run aggregate supply curve.
d. aggregate supply increases, which leads to movement along the aggregate demand curve.
e. aggregate supply decreases, which leads to movement along the aggregate demand curve.
C
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If Nike and Adidas are faced with the game in the figure shown, we can predict:
A. an outcome that is less than ideal for society, but optimal for the companies. B. an outcome that is good for society and less than ideal for the companies. C. that both will follow their dominant strategy and society will lose. D. None of these is likely to happen.
How are interest rates determined in the Keynesian model?
A. money supply, interest rates, government spending, supply, price and output B. money supply, interest rates, investment, demand, price and output C. money supply, savings, consumption, demand, price and output
Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. Figure 7.6Refer to Figure 7.6. If this shoe manufacturer increases labor from 20 to 25 (moving along the given isoquant with Q=50), the marginal product of the 25th worker
A. is 7.5, as capital can be reduced by 7.5 units when the 25th worker is hired. B. is zero, as the total number of shoes produced remains at 50. C. cannot be determined because output remains constant. D. cannot be determined because both capital and labor have been increased.
In the United States, ________ profits are taxed at both the corporate level and when investors receive dividends
A) corporate B) a sole proprietor's C) a partnership's D) all of the above