A decrease in aggregate supply will cause the price level to:
a. rise and GDP to fall.
b. rise and GDP to rise.
c. rise and the unemployment rate to fall.
d. fall and GDP to rise.
e. fall and the unemployment rate to rise.
Question 2
The speculative demand for money is the stock of money that people hold to:
a. pay their predictable, everyday expenses.
b. pay for any unexpected expenses that may occur.
c. buy stocks, bonds, and other financial assets.
d. buy the foreign currencies needed to purchase imports.
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