Refer to Table 9-6. What is the value of $D in Stage 4 (round up to the nearest whole number)?

According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve intersects:

a. the vertical portion of the aggregate supply curve. b. the upward sloping portion of the aggregate supply curve. c. the horizontal portion of the aggregate supply curve. d. either the upward sloping or the vertical portions of the aggregate supply curve. e. either the horizontal or vertical portions of the aggregate supply curve.

If the unemployment rate falls below its long-run level, which policies would be appropriate to stabilize output?

a. increase the money supply, increase taxes b. increase the money supply, cut taxes c. decrease the money supply, increase taxes d. decrease the money supply, cut taxes