According to the simple quantity theory of money, an increase in the money supply will shift the __________ curve to the right and raise __________
A) AD; Real GDP
B) AS; the price level
C) AD; the price level
D) AS; Real GDP
E) none of the above
C
Economics
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The shift of the short-run Phillips curve in the figure above is the result of
A) an increase in the natural unemployment rate. B) a decrease in the expected inflation rate. C) a decrease in the actual inflation rate. D) an increase in the expected inflation rate. E) a decrease in the natural unemployment rate.
Economics
When the price of labor increases, the substitution effect will ________ the quantity of labor demanded and the output effect will ________ it
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Economics