According to the Keynesian view of aggregate supply, an increase in the money supply will:
A. Always cause inflation.
B. Cause inflation if the economy is at full employment.
C. Cause inflation only if aggregate supply is horizontal.
D. Never cause inflation.
B. Cause inflation if the economy is at full employment.
Economics
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Use the following graph to answer the next question.
Assume the economy is initially located on AD0 and AS0. An increase in resource prices would result in price ________ and real domestic output ________.
A. F; A B. F; C C. G; B D. E; B
Economics
You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. If the return on your investment is ________, then you will earn an economic loss.
A. less than 6% B. exactly 6% C. greater than 6% D. It is indeterminate from the given information.
Economics