Author Question: According to the Keynesian model of the money market, the supply of money a. depends on the ... (Read 86 times)

mikaylakyoung · **on:** Jun 30, 2018

According to the Keynesian model of the money market, the supply of money

a. depends on the interest rate.
b. is chosen by the central bank.
c. varies with the price level.
d. varies with income.

Question 2

If real GDP exceeds potential GDP, this means that

a. output is below the level produced at the benchmark rate for high employment and high rate of resource utilization.
b. this cannot occur; the economy can never be at a point where real GDP exceeds potential GDP.
c. cyclical output is above what the economy can sustain in the long-run.
d. the economy is expanding.