If wages do not instantaneously adjust to reflect expected inflation that is based on an anticipated increase in the money supply,
A) the aggregate demand and positively sloped aggregate supply curve shift to the right at the same time.
B) the positively sloping aggregate supply curve shifts to the left after the aggregate demand curve shifts to the right.
C) the positively sloping aggregate supply curve shifts to the left before the aggregate demand curve shifts to the right.
D) the positively sloping aggregate supply curve does not shift to the right at the same time as the aggregate demand curve shifts to the left.
B
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In a small country, using prices of 2012, GDP in 2012 was $100 and GDP in 2013 was $110. Using prices of 2013, GDP in 2012 was $200 and GDP in 2013 was $210
The country's BEA will calculate ________ percent as the growth in real GDP between those years. A) 7.5 B) 15 C) 10 D) 5 E) None of the above answers is correct.
If the demand and supply both increase equally, then the equilibrium price ________, and the equilibrium quantity ________
A) increases; increases B) does not change; increases C) decreases; does not change D) increases; does not change E) increases; decreases