Given an upward-sloping aggregate supply curve, which of the following is most likely to occur if the Fed sells bonds in the open market, ceteris paribus?
A. Greater inflation and more unemployment.
B. Greater inflation and less unemployment.
C. Lower average prices and less unemployment.
D. Lower average prices and more unemployment.
D. Lower average prices and more unemployment.
Economics
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The short-run aggregate supply curve
A) is vertical. B) shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant. C) illustrates the level of potential real GDP. D) shifts whenever the price level changes.
Economics
Which goods have more elastic demands?
A) goods with many substitutes B) goods which are necessities C) goods with few substitutes D) goods whose purchase represents a small percentage of income
Economics