Author Question: Given implicit or explicit resource price agreements, if the actual price level is below the ... (Read 91 times)

leo leo · **on:** Jun 30, 2018

Given implicit or explicit resource price agreements, if the actual price level is below the expected price level, the:
a. economy will move rightward along the short-run aggregate supply curve.
b. economy will move leftward along the short-run aggregate supply curve.
c. short-run aggregate supply curve will shift to the left.
d. long-run aggregate supply curve will become steeper.
e. short-run aggregate supply curve will become flatter.

Question 2

In the money market, if the money supply decreases, the opportunity cost of holding money:
a. decreases and the quantity of money demanded increases.
b. decreases and the quantity of money demanded falls.
c. increases and the quantity of money demanded falls.
d. increases but the quantity of money demanded remains unchanged.
e. increases and the quantity of money demanded also increases.