Author Question: Ceteris paribus, which of the following situations would result in the largest quantity of money ... (Read 55 times)

cherise1989 · **on:** Jun 30, 2018

Ceteris paribus, which of the following situations would result in the largest quantity of money demanded?
a. When nominal GDP = 1.4 trillion and the interest rate is 3 percent.
b. When nominal GDP = 1.4 trillion and the interest rate is 6 percent.
c. When nominal GDP = 1.2 trillion and the interest rate is 5 percent.
d. When nominal GDP = 800 billion and the interest rate is 4 percent.

Question 2

Long-term economic growth requires a permanent:
a. decline in the average price level.
b. leftward shift of the vertical Phillips curve.
c. rise in the natural rate of unemployment.
d. leftward shift of the aggregate demand curve.
e. rightward shift of the vertical aggregate supply curve.