Assuming a long-run aggregate supply curve, an increase in the money supply results in ________ in output and ________ in price level.
A. a decrease; a decrease
B. an increase; no change
C. a decrease; no change
D. no change; an increase
Answer: D
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If the monopoly illustrated in the figure above could engage in perfect price discrimination, then each buyer would pay
A) $2.00. B) $3.00. C) $3.50. D) a different price.
A rise in six-month LIBOR is good news to __________ in a swap contract
A) the fixed-rate payer B) the floating-rate payer C) both payers D) neither payer
If Macroland's MPC is 0.8, then we know MPS = 1.8 from the relation MPS = 1 + MPC
Indicate whether the statement is true or false
Unlike a perfectly competitive firm, a monopolistically competitive firm
a. faces a perfectly inelastic demand curve. b. can earn positive economic profit in the short run and in the long run. c. cannot earn positive economic profit even in the short run. d. does not have the same marginal revenue at every output level.