In terms of the price-real GDP diagram, a given expansion of the money supply will have a greater effect on prices the
A. steeper the aggregate supply curve.
B. flatter the aggregate supply curve.
C. higher the initial price level.
D. lower the initial price level.
Answer: A
You might also like to view...
In the figure above, at the point where the price is $50 per bunch, the price elasticity of supply is
A) 2.14. B) 0.47. C) 1. D) 3. E) 0.33.
Ben owns stock in two similar, large, financially sound corporations. Company A consistently earns rates of return of 12 percent per year, while company B regularly generates rates of return of 8 percent per year. If Ben is attempting to arbitrage, he
will: A. sell his stock in company B and buy more stock in company A. B. sell his stock in company A and buy more stock in company B. C. keep his portfolio balanced with an equal or nearly equal number of shares of each stock. D. buy stock in other companies in an effort to diversify and minimize risk.