Author Question: Short-run aggregate supply: a. is a fixed volume of output. b. reflects how much RGDP suppliers are ... (Read 85 times)

MGLQZ · **on:** Jun 30, 2018

Short-run aggregate supply:
a. is a fixed volume of output.
b. reflects how much RGDP suppliers are willing and able to produce at different price levels.
c. shifts only when the LRAS shifts.
d. is not affected at all by the price level.

Question 2

The interest rate effect states that an increase in the price level will cause:
a. a decline in the interest rate.
b. a decrease in investment and aggregate expenditures.
c. an increase in the equilibrium level of income.
d. a decrease in the supply of financial assets.
e. an increase in real wealth.