According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve intersects:
a. the vertical portion of the aggregate supply curve.
b. the upward sloping portion of the aggregate supply curve.
c. the horizontal portion of the aggregate supply curve.
d. either the upward sloping or the vertical portions of the aggregate supply curve.
e. either the horizontal or vertical portions of the aggregate supply curve.
c
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If taxes and government expenses did not vary with income, then income would
A. be less stable. B. be more stable. C. not change. D. be closer to potential income.
Nadia consumes two goods, food and clothing. The price of food is $2, the price of clothing is $5, and her income is $1,000 . Nadia always spends 40 percent of her income on food regardless of the price of food, the price of clothing, or her income
a. What is her price elasticity of demand for food? b. What is her cross-price elasticity of demand for food with respect to the price of clothing? c. What is her income elasticity of demand for food?
Transaction deposits
A) are deposits in a thrift institution or a commercial bank on which a check may be written. B) are only deposits that you can check on through the Internet. C) include savings accounts. D) are accounts that pay interest to the depositor.
If a firm sells more than the break-even quantity,
a. It will make a profit b. It will only cover the variable costs c. It will make a loss d. A firm is unable to sell above the break-even quantity