Aggregate demand and aggregate supply analysis suggest that, in the short run, an expansionary monetary will result in
a) a shift in the aggregate demand curve to the left
b) a shift in the aggregate supply curve to the left
c) an increase in real GDP without much inflation when the economy is on the horizontal portion of the aggregate supply curve
d) an increase in real GDP with high inflation when the economy is on the horizontal portion of the aggregate supply curve
e) an increase in real GDP and no inflation when the economy is on the verticall portion of the aggregate supply curve
Ans: c) an increase in real GDP without much inflation when the economy is on the horizontal portion of the aggregate supply curve
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Refer to the figure above. What is the market-wide consumer surplus when the market price of wine is $18?
A) $36,000 B) $3,000 C) $45,000 D) $210,000
Which of the following can be considered an injection into an economy?
a. Imports b. Investment c. Aid to foreign countries d. Saving e. Taxes