Author Question: An increase in aggregate demand results in A) a higher unemployment rate and a lower price level. ... (Read 80 times)

james9437 · **on:** Jun 29, 2018

An increase in aggregate demand results in

A) a higher unemployment rate and a lower price level.
B) a decrease in real GDP and a decrease in the price level.
C) a lower unemployment rate and a lower price level.
D) an increase in real GDP and a decrease in the price level.
E) a lower unemployment rate and a higher price level.

Question 2

If there is no Ricardo-Barro effect, an increase in the government budget surplus

A) increases the supply of loanable funds.
B) decreases private saving.
C) increases private saving.
D) decreases the supply of loanable funds.
E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.