Author Question: When an increase in aggregate demand exceeds the increase in aggregate supply A) real GDP ... (Read 78 times)

mynx · **on:** Jun 29, 2018

When an increase in aggregate demand exceeds the increase in aggregate supply

A) real GDP decreases while nominal GDP increases.
B) the price level falls while real GDP increases.
C) nominal GDP decreases and real GDP decreases.
D) the economy will experience inflation as the price level rises.

Question 2

The change in U.S. official reserves is equal to

A) borrowing from abroad plus the current account deficit.
B) the current account balance plus the capital and financial account balance.
C) the current account balance minus the capital and financial account balance.
D) foreign investment in the United States minus U.S. investment abroad.