The short-run aggregate supply curve shows a(n):
a. direct relationship between the expected price level and nominal GDP supplied.
b. inverse relationship between the actual price level and real GDP supplied.
c. direct relationship between the actual price level and nominal GDP supplied.
d. direct relationship between the actual price level and real GDP supplied.
e. inverse relationship between the expected price level and real GDP supplied.
Question 2
In the money market, an increase in money supply will:
a. increase the demand for money at each interest rate.
b. decrease the demand for money at each interest rate.
c. encourage people to exchange money for interest-bearing assets.
d. encourage people to exchange interest-bearing assets for money.
e. increase the interest rate.
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