Suppose that the money supply decreases. In the short run, this increases prices according to
a. both the short-run Phillips curve and the aggregate demand and aggregate supply model.
b. neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
c. the short-run Phillips curve, but not according to the aggregate demand and aggregate supply model.
d. the aggregate demand and aggregate supply model but not according to the short-run Phillips curve.
b
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An indifference curve is a line showing
a. combinations of goods that can be produced if all resources are fully employed. b. all combinations of two commodities that are equally desirable to the consumer. c. all combinations of goods over which the consumer has no choice. d. how decisions are made in a nonmarket economy.
Which of the following is an accurate statement concerning effects on the supply curve?
a. Few events will affect the supply curve but not the demand curve. b. Few events will affect the equilibrium curve but not the supply curve. c. Many events will affect the supply curve but not the demand curve. d. Many events will affect the supply curve but not the equilibrium curve.