In the mid-1970s the price of oil rose dramatically. This
a. shifted aggregate supply left, the price level rose, and real GDP fell.
b. caused U.S. prices to fall, and real GDP rose.
c. caused an increase in U.S. prices and real GDP.
d. caused a decrease in U.S. prices and real GDP.
a
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If the Fed sells government securities to a member of the nonbank public, then the resulting effect on the quantity of money is
A) that there is no change in the quantity of money. B) much larger than if the securities were sold to a bank. C) much smaller than if the securities were sold to a bank. D) the same as if the securities were sold to a bank. E) None of the above answers is correct.
The sustained expansion of production possibilities is called
A) opportunity cost of growth. B) production possibilities. C) economic growth. D) economic investment. E) production expansion.