Refer to the graph above. Ongoing inflation would occur if the Fed:
A. Increases the money supply causing AD to shift faster than technological progress shifts AS
B. Increases the money supply causing AD to shift slower than technological progress shifts AS
C. Increases the money supply causing AD to shift as fast as technological progress shifts AS
D. Does not increase the money supply while technological progress is shifting AS
A. Increases the money supply causing AD to shift faster than technological progress shifts AS
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The figure above shows the market supply and market demand curves for pizza. If the market is at its equilibrium, what area in the graph above represents:
a) consumer surplus? b) producer surplus?
Which of the following is an accurate statement about the Great Depression?
(A) It was a recession that became a depression because of World War II. (B) It was the most severe economic downturn in the history of industrial capitalism. (C) It was set off because of a sharp and unexpected rise in interest rates. (D) Its effects and duration would have been even worse if it weren't for a strong economy in Japan and Europe at the time.