Suppose the Fed increases the money supply. As a result of this, people go out and spend more money on consumer goods, increasing aggregate spending. This is known as a(n)

Other things the same, if the price level is higher than expected, then some firms believe that the relative price of what they produce has

a) increased, so they decrease production. b) decreased, so they increase production. c) decreased, so they decrease production. d) increased, so they increase production.

Recessions occur because of

A) difficulties in coordinating economic affairs. B) shocks to technology. C) real adverse shocks to the economy. D) all of the above.