An increase in the quantity of money shifts the aggregate demand curve rightward
Indicate whether the statement is true or false
TRUE
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Which of the following events would lead to an increase in the marginal product of labor for every quantity of labor?
A) An increase in the real wage B) A decrease in the real wage C) A favorable supply shock such as a fall in the price of oil D) An adverse supply shock, such as a reduced supply of raw materials
Acquiring a firm that sells a substitute good will
a. Make the demand curve more inelastic b. Make the demand curve more elastic c. Make MR>MC d. Will have no effect on the demand curve
Stagflation is caused by
a. a negative supply shock. b. a positive supply shock. c. a negative demand shock. d. a positive demand shock. e. none of the above.
When inflation rises, firms make
a. more frequent price changes. This raises their menu costs. b. more frequent price changes. This reduces their menu costs. c. less frequent price changes. This raises their menu costs. d. less frequent price changes. This reduces their menu costs.