Author Question: A recessionary gap is usually closed in the long run by a(n): a. rightward shift of the short-run ... (Read 47 times)

OSWALD · **on:** Jun 30, 2018

A recessionary gap is usually closed in the long run by a(n):
a. rightward shift of the short-run aggregate supply curve.
b. leftward shift of the short-run aggregate supply curve.
c. rightward movement along a fixed short-run aggregate supply curve.
d. decrease in aggregate demand.
e. leftward movement along a fixed short-run aggregate supply curve.

Question 2

If investment is not sensitive to changes in the interest rate, then changes in the money supply:
a. will have no effect on interest rates.
b. will have no impact on the quantity of money demanded.
c. will have no effect on the aggregate demand of an economy.
d. will have a major impact on the aggregate demand of an economy.
e. will have a major impact on the price level in an economy.