Author Question: If the variable on the vertical axis increases by 20 and the variable on the horizontal axis ... (Read 170 times)

Lobcity · **on:** Jun 30, 2018

If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is

A) 0.25. B) 4. C) 15. D) 100.

Question 2

Suppose the economy currently has some underutilized resources. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to

A) increase aggregate demand, increase prices and increase real GDP.
B) increase short-run aggregate supply, decrease in prices and decrease in real GDP.
C) increase short-run aggregate supply, decrease prices and increase real GDP.
D) increase aggregate demand, increase prices and decrease real GDP.