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Author Question: Which of the following is true of a beneficial supply shock? a. It can lead to a temporary lower ... (Read 59 times)

FButt

  • Hero Member
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  • Posts: 519
on: Jun 30, 2018
Which of the following is true of a beneficial supply shock?
 a. It can lead to a temporary lower price level.
 b. It can create a recessionary gap.
 c. It can permanently decrease the economy's price level.
  d. It can shift the aggregate demand curve rightward.
 e. It can shift the aggregate demand curve leftward.

Question 2

Which of the following identities describe the equation of exchange?
 a. Money in circulation  prices = velocity  income
  b. Money in circulation  income = velocity  prices
  c. Real GDP = money in circulation  velocity
 d. Nominal GDP = money in circulation  velocity
 e. Real GDP = prices  money in circulation  velocity


Juro

  • Sr. Member
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  • Posts: 337
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

d


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