Suppose a country experiences an increase in its capital stock. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?

The unreported underground economy represents about 1 percent of U.S. GDP

Indicate whether the statement is true or false

As we approached the end of the millennium, many economic crackpots advised citizens to hold large quantities of cash in anticipation of Y2K disasters. What effect would this have had on velocity if many people had been foolish enough to follow this advice?

a. It would have decreased. b. It would have increased. c. It would have remained constant. d. Velocity is unrelated to cash balances.