Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase:
a. both the price level and real GDP
b. real GDP without raising the price level.
c. the price level without affecting real GDP.
d. the price level but reduce real GDP.
a
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Over the course of the business cycle, most firms respond
a) to negative shocks by cutting wages b) to positive shocks by raising prices c) to negative shocks by cutting prices d) to positive shocks by raising output e) all of the above
Which activity of the Fed would tend to increase the nation's money supply?
A) Sales of government bonds B) Lowering the discount rate C) Raising the required reserve ratio D) None of the above.
The portion of NI in the United States that takes the form of compensation of employees amounts to
a. less than one-fourth. b. approximately one-third. c. approximately one-half. d. approximately three-fifths.
The most important job of the Federal Reserve is to ______.
Fill in the blank(s) with the appropriate word(s).