Author Question: If resource suppliers and demanders find out that the actual price level exceeds the expected price ... (Read 61 times)

abc · **on:** Jun 30, 2018

If resource suppliers and demanders find out that the actual price level exceeds the expected price level, they will take corrective actions that will:
a. cause the economy to move away from the potential output level.
b. raise the unemployment level above the natural rate of unemployment.
c. shift the aggregate demand curve of an economy.
d. shift the short-run aggregate supply curve of an economy.
e. lower the actual price level.

Question 2

When the Fed adopts an expansionary monetary policy:
a. the demand for investment curve shifts to the left.
b. the demand for investment curve shifts to the right.
c. there is a downward movement along the demand for investment curve.
d. there is an upward movement along the demand for investment curve.
e. there is no impact on the demand for investment curve.