Suppose the economy experiences a recessionary gap. Expansionary monetary policy will
A) increase real GDP and increase the price level.
B) increase real GDP and decrease the price level.
C) decrease real GDP and increase the price level.
D) decrease real GDP and decrease the price level.
Ans: A) increase real GDP and increase the price level.
Economics
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If changes in inflation are higher than expected,
A) the long-run Phillips curve will be negatively sloped. B) the short-run Phillips curve will be positively sloped, but not vertical. C) the short-run Phillips curve will be vertical. D) the short-run Phillips curve will be negatively sloped.
Economics
Above the shutdown point, a competitive firm's supply curve coincides with its:
a. marginal revenue curve. b. marginal cost curve. c. average variable cost curve. d. average total cost curve.
Economics