This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When the actual price level in an economy turns out to be lower than that expected in the short run, ... (Read 91 times)

genevieve1028

  • Hero Member
  • *****
  • Posts: 601
on: Jun 30, 2018
When the actual price level in an economy turns out to be lower than that expected in the short run, _____.
 a. businesses cut back production
 b. the potential output level decreases
 c. the aggregate supply curve shifts leftward
  d. the aggregate supply curve shifts rightward
  e. an expansionary gap develops

Question 2

For a given money demand curve, an increase in money supply:
 a. drives up the real interest rate.
 b. lowers the opportunity cost of holding money.
 c. decreases the quantity of money demanded.
 d. drives down the price level in an economy.
 e. contracts the total output produced in an economy.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

smrerig

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

b


genevieve1028

  • Member
  • Posts: 601
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

peter

  • Member
  • Posts: 330
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Levels of Processing Affects Long-Term but not Short-Term Memory Levels of Processing Affects Long-Term but not Short-Term Memory
Numerical pain level chart with word modifiers. Numerical pain level chart with word modifiers.
The lower intake manifold attaches to the cylinder heads. The lower intake manifold attaches to the cylinder heads.
Apply superficial friction to the upper and lower back. Stand to one side. Ask the recipient to lean ... Apply superficial friction to the upper and lower back. Stand to one side. Ask the recipient to lean ...
A Short List of Human X-Linked Recessive and X-Linked Dominant Traitsa A Short List of Human X-Linked Recessive and X-Linked Dominant Traitsa
Video: Exercise and cardiac output

For a complete list of videos, visit our video library