Suppose the economy currently has some underutilized resources. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to
A) increase aggregate demand, increase prices and increase real GDP.
B) increase short-run aggregate supply, decrease in prices and decrease in real GDP.
C) increase short-run aggregate supply, decrease prices and increase real GDP.
D) increase aggregate demand, increase prices and decrease real GDP.
A
Economics
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A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium
a. shortage, shortage b. surplus, surplus c. shortage, surplus d. surplus, shortage
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In the United States, the money for loans to businesses comes mainly from
a. corporate profits. b. the federal government. c. savings held in lending institutions. d. state and local governments.
Economics