A fall in the money wage rate ________ aggregate supply and ________
A) decreases; shifts the AS curve rightward
B) increases; shifts the AS curve leftward
C) decreases; shifts the AS curve leftward
D) increases; shifts the AS curve rightward
E) does not change; does not shift the AS curve
D
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The Federal Reserve's most important function is to change the money supply in order to smooth out the business cycle
a. True b. False Indicate whether the statement is true or false
If there is surplus of loanable funds, then
a. the supply for loanable funds shifts right and the demand shifts left. b. the supply for loanable funds shifts left and the demand shifts right. c. neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. d. neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.