When the Fed decreases the money supply:
a. aggregate demand and aggregate supply both increase
b. aggregate demand increases, which leads to movement along the short-run aggregate supply curve.
c. aggregate demand decreases, which leads to movement along the short-run aggregate supply curve.
d. aggregate supply increases, which leads to movement along the aggregate demand curve.
e. aggregate supply decreases, which leads to movement along the aggregate demand curve.
c
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The Industrial Revolution in England in large was the result of
A) growth in human capital. B) technological innovations encouraged by the patent system. C) population growth. D) technological innovations that were financed mainly by government spending.
In order to spend more time with her children, a young mother decides to work less hours as her pay increases. What does her labor supply curve look like?
What will be an ideal response?