Refer to the table shown. In trillions of dollarsConsumption3.5Investment1.2Government Purchases1.8Exports0.6Imports0.4What is the economy's GDP?

If money demand is not responsive to changes in interest rates, then

a. the LM curve is vertical. b. the IS curve determines equilibrium output. c. the LM curve will become horizontal. d. the LM curve will become vertical. e. a and b.

Suppose there was an unexpected increase in aggregate demand. We would expect to observe

A. a decrease in aggregate demand. B. frictional unemployment to increase. C. the duration of unemployment and the amount of unemployment to decrease. D. higher wages, with the duration of unemployment and the amount of unemployment unchanged.