What happens to the aggregate demand curve when the Fed reduces the money supply?
a. It shifts leftward, lowering real GDP and the price level.
b. It shifts leftward, raising real GDP and the price level.
c. It shifts leftward, lowering real GDP but raising the price level.
d. It shifts rightward, raising real GDP and the price level.
e. It shifts rightward, lowering real GDP but raising the price level.
A
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De Beers has a monopoly in the market for diamonds because they own a significant portion of the known diamond mines. One important source of challenge to De Beers' control of the diamond market is
a. the additional market supply from Russia, Australia, and Canada b. the emerging auction markets for diamonds in France and Spain c. the growing demand for diamonds in industrial uses d. that its South African mines are not producing as many diamonds as they did decades ago e. antitrust legislation in the United States
According to the infant-industry argument, protection should be withdrawn from an infant industry when the companies in the industry
A) are listed on the domestic stock exchange. B) become profitable. C) double their sales revenues. D) reach a sufficient size to compete with foreign firms.