If the Fed increases the quantity of money, then
A) aggregate demand increases and the AD curve shifts rightward.
B) the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
C) both the aggregate demand curve and the aggregate supply curve shift leftward.
D) aggregate demand decreases and the AD curve shifts leftward.
E) the quantity of real GDP demanded increases and there is a movement down along the AD curve.
A
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The income per capita of two neighboring countries for a particular year were equal. However, Country 1 had a higher income per worker than Country 2. Which of the following is likely to be true?
A) The number of people unemployed is lower in Country 1 than in Country 2. B) The number of children aged below 15 is higher in Country 2 than in Country 1. C) The number of retired people is higher in Country 2 than in Country 1. D) The number of people employed is higher in Country 2 than in Country 1.
When a price ceiling below the equilibrium price is imposed on a good, production of the good
A) increases. B) decreases. C) does not change. D) is frozen at the pre-ceiling level. E) either increases or decreases depending on whether the supply of the good increases or decreases when the price ceiling is imposed.
In the United States, the government does NOT play much of a role in
A. encouraging technological change. B. managing globalization. C. shaping financial markets. D. inspiring consumer preferences.
At equilibrium, C + S = C + I.
Answer the following statement true (T) or false (F)