Starting from a position of macroeconomic equilibrium at below the full-employment level of real GDP, an increase in the money supply will:
a. raise interest rates, prices, and reduce real GDP.
b. raise interest rates, lower prices, and leave real GDP unchanged.
c. raise interest rates, lower prices, and leave real GDP unchanged.
d. lower interest rates, raise prices, and increase real GDP.
d
Economics
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Menu costs help explain
a. sticky-price theory. b. misperceptions theory. c. sticky-wage theory. d. All of the above are correct.
Economics
If a firm raised its price and discovered that its total revenue fell, then the demand for its product is
A) perfectly inelastic. B) relatively inelastic. C) perfectly elastic. D) relatively elastic.
Economics