Author Question: Based on the figure above, the aggregate supply curve shifts rightward and the potential GDP line ... (Read 126 times)

Bob-Dole · **on:** Jun 29, 2018

Based on the figure above, the aggregate supply curve shifts rightward and the potential GDP line does not change when

A) the money wage rate rises.
B) the price level rises.
C) the money wage rate falls.
D) the price level falls.
E) both the price level and money wage rate rise by the same proportion.

Question 2

Consider the market for credit. When the supply of credit increases while the demand for credit remains unchanged,

A) the interest rate will decrease and the amount of credit provided in the market will increase.
B) the interest rate will increase and the amount of credit provided in the market will increase.
C) the interest rate will decrease and the amount of credit provided in the market will decrease.
D) the interest rate will increase and the amount of credit provided in the market will decrease.