Author Question: As actual output falls below the potential level in the short run, which of the following is most ... (Read 72 times)

Jramos095

  • Hero Member
  • *****
  • Posts: 528
As actual output falls below the potential level in the short run, which of the following is most likely to occur?
 a. More resources will become unemployed.
  b. The price level will increase.
 c. Real GDP will increase.
 d. Nominal GDP will remain constant.
 e. The natural rate of unemployment will fall.

Question 2

An increase in the money supply leads to a(n):
 a. decline in interest rates, an increase in investment, and an increase in aggregate demand.
  b. decline in interest rates, a decrease in investment, and an increase in aggregate demand.
  c. decline in interest rates, an increase in investment, and a decline in aggregate demand.
  d. increase in interest rates, an increase in investment, and an increase in aggregate demand.
  e. decline in interest rates, a decline in investment, and a decline in aggregate demand.



Sophiapenny

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

a

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

For a complete list of videos, visit our video library