Author Question: If the supply of good A is perfectly elastic, a decrease in demand will: a. reduce the equilibrium ... (Read 32 times)

appyboo · **on:** Jun 30, 2018

If the supply of good A is perfectly elastic, a decrease in demand will:
a. reduce the equilibrium quantity traded, but leave the price unchanged.
b. reduce the equilibrium quantity traded, and reduce the price.
c. reduce the equilibrium price, but leave the quantity traded unchanged.
d. reduce the equilibrium price traded, but increase the quantity traded.

Question 2

Starting at full employment (RGDPNR),
a. expansionary monetary policy can potentially result in increased real output, but only in the short run.
b. expansionary monetary policy can potentially result in increased real output in both the short run and long run.
c. contractionary monetary policy can potentially result in increased real output, but only in the short run.
d. contractionary monetary policy can potentially result in increased real output in both the short run and long run.