Author Question: In the aggregate demandaggregate supply model, which of these changes is most likely when the cost ... (Read 66 times)

stock · **on:** Jun 30, 2018

In the aggregate demandaggregate supply model, which of these changes is most likely when the cost of production increases in the long run?
a. A leftward shift of the short-run aggregate supply curve
b. A leftward shift of the short-run aggregate demand curve
c. A rightward shift of the short-run aggregate supply curve
d. An increase in the potential output level increases.
e. A decrease in the actual price level decreases.

Question 2

In the aggregate demand-aggregate supply model in the short run, a decrease in the money supply is likely to cause a(n):
a. increase in both the price level and real GDP.
b. decrease in both the price level and real GDP.
c. increase in real GDP and a decrease in the price level.
d. decrease in real GDP and an increase in the price level.
e. increase in the price level only.