Along the long-run aggregate supply curve, the level of RGDP ...

[Collmarie]

Along the long-run aggregate supply curve, the level of RGDP supplied ____ with increases in the price level.
 a. does not change
 b. increases
 c. decreases slightly
 d. decreases dramatically

Question 2

When the purchasing power of money declines:
 a. the demand for money increases and interest rates fall.
  b. the supply of bonds increases and interest rates fall.
  c. the demand for money increases and interest rates rise.
  d. the supply of bonds decreases and interest rates rise.
  e. the demand for money decreases and interest rates rise.

[tkempin]

Answer to Question 1

a

Answer to Question 2

c