In the research that used the audit method to send 38 people to purchase new cars from car dealers in Chicago, the lowest prices were quoted to

Expansionary monetary policy should be used if:

A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above.

If aggregate expenditures (AE) are less than aggregate output (real GDP), then firms will:

a. have unplanned inventory accumulation. b. earn above-average profits. c. expand production and hire more workers. d. be raising their prices.