Author Question: Expansionary monetary policy during periods of underutilized resources can cause A) real Gross ... (Read 172 times)

crazycityslicker · **on:** Jun 29, 2018

Expansionary monetary policy during periods of underutilized resources can cause

A) real Gross Domestic Product (GDP) to increase without an increase in the price level.
B) real Gross Domestic Product (GDP) to increase with a decrease in the price level.
C) real Gross Domestic Product (GDP) to increase with an increase in the price level.
D) nominal Gross Domestic Product (GDP) to increase but cannot affect real Gross Domestic Product (GDP).

Question 2

Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price

A) P5 and sell Q1 units.
B) P2 and sell Q1 units.
C) P3 and sell Q3 units.
D) P1 and sell Q4 units.