If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.

Recessions are associated with lower incomes, rising unemployment, and falling profits

a. True b. False Indicate whether the statement is true or false

Answer the following questions true (T) or false (F)

1. In the circular flow model, households supply resources such as labor services in the product market. 2. A welding machine is an example of a factor of production if it is being used to produce automobiles. 3. One of the monetary policy goals of the Federal Reserve is price stability.