If the Federal Open Market Committee (FOMC) decides to expand the money supply, then:
a. it will issue directions to sell U.S. government securities, thus increasing the velocity of circulation of the money supply.
b. it will issue directions to purchase U.S. government securities, thus putting more reserves in the hands of banks.
c. it will order new Federal Reserve notes delivered to member

Lucinda is deciding whether to enroll in an art school or a culinary school. The art school will cost $38,000 and the culinary school will cost $52,000

Lucinda estimates that the benefits from attending the art school will be $75,000 and the benefits from attending the culinary school will be $88,000. Based on these numbers, in which school should Lucinda enroll?

Refer to the diagram. Suppose that aggregate demand increased from AD 1 to AD 2 . For the price level to stay constant:

A.  the aggregate supply curve would have to shift rightward.
B.  the aggregate supply curve would have to shift leftward.
C.  real domestic output would have to remain constant.
D.  the aggregate supply curve would have to be vertical.