Author Question: If potential GDP increases, then in the figure above the potential GDP line ________, and the ... (Read 26 times)

lunatika · **on:** Jun 29, 2018

If potential GDP increases, then in the figure above the potential GDP line ________, and the aggregate supply curve ________.

A) does not shift; does not shift
B) shifts rightward; does not shift
C) does not shift; shifts rightward
D) shifts rightward; shifts rightward
E) shifts rightward; shifts leftward

Question 2

If the monetary base does not change and the desired reserve ratio increases, the money multiplier ________ and the quantity of money ________.

A) increases; decreases
B) decreases; decreases
C) increases; increases
D) decreases; does not change
E) decreases; increases