If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply, aggregate demand:
a. falls, which increases real GDP and the price level
b. increases, which decreases real GDP and the price level.
c. falls, which decreases real GDP and increases the price level.
d. increases, which decreases real GDP and increases the price level.
e. increases, which increases real GDP and the price level.
e
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Perfect competition forms one extreme of the market structure spectrum.
Answer the following statement true (T) or false (F)
A five-cent deposit on beer bottles
A) provides a positive incentive because it rewards people for recycling. B) provides a negative incentive because it punishes people who do not recycle. C) is an irrational policy, because it fails to take into account incentives. D) is an irrational policy, because it fails to take into account self-interest.
The popular theory prior to the Great Depression that the economy will automatically adjust to achieve full employment in the long run is:
A. supply-side economics. B. Keynesian economics. C. classical economics. D. mercantilism
If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:
A. there isn't enough room in the factory. B. there isn't an infinite number of workers. C. wages would have to increase. D. they stop when MRP = wage