Author Question: The Keynesian range of the aggregate supply curve applies when the economy is at or near full ... (Read 106 times)

tingc95 · **on:** Jun 30, 2018

The Keynesian range of the aggregate supply curve applies when the economy is at or near full employment.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Assume the Fed decreases the money supply and the demand for money curve is fixed. In response, people will:
a. sell bonds, thus driving up the interest rate.
b. buy bonds, thus driving down the interest rate.
c. buy bonds, thus driving up the interest rate.
d. sell bonds, thus driving down the interest rate.