The aggregate-demand curve shows that an increase in the price level
a) decreases the real value of goods and services demanded in the economy.
b) decreases the dollar value of goods and services demanded in the economy.
c) increases the real value of goods and services demanded in the economy.
d) increases the dollar value of goods and services demanded in the economy.
Ans: a) decreases the real value of goods and services demanded in the economy.
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The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, there is
A) a shortage of 3,000 units of rental housing. B) a shortage of 6,000 units of rental housing. C) a surplus of 3,000 units of rental housing. D) neither a shortage nor a surplus of rental housing.
The money supply is
A) the rate at which the Federal Reserve Board prints currency. B) limited to currency and coins. C) the amount of money in circulation. D) the rate at which the Federal Reserve Board creates money.