Author Question: Given the aggregate demand curve, an increase in the supply of a productive resource will: a. ... (Read 28 times)

Kikoku · **on:** Jun 30, 2018

Given the aggregate demand curve, an increase in the supply of a productive resource will:
a. increase output but leave prices unchanged.
b. decrease both output and prices.
c. increase the price level and decrease output.
d. decrease the price level and increase output.
e. increase the price level but leave output unchanged.

Question 2

In the long run, if the money supply increases:
a. most of the resulting rise in nominal GDP will be a result of increases in the exchange rate.
b. most of the resulting rise in nominal GDP will be a result of increases in the price level.
c. most of the resulting rise in real GDP will be a result of increases in the price level.
d. most of the resulting rise in real GDP will be a result of increases in the interest rate.
e. most of the resulting rise in real GDP will be a result of increases in aggregate expenditure.