Suppose that the price level does not change while real GDP ...

[09madisonrousseau09]

Suppose that the price level does not change while real GDP decreases. As a result,
 
  A) the quantity of money demanded decreases and there is a movement downward along the demand for money curve.
  B) the supply of money curve shifts leftward.
  C) the demand for money increases and the demand for money curve shifts rightward.
  D) the demand for money decreases so that households and firms hold smaller amounts of money.
  E) the supply of money curve shifts rightward.

Question 2

More generous unemployment benefits ________ the opportunity cost of looking for a new job and therefore ________ the job search process
 
  A) lower; extend
  B) lower; does not change
  C) lower; shorten
  D) raise; extend
  E) raise; shorten

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Answer to Question 1

D

Answer to Question 2

A

[09madisonrousseau09]

Thank you

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