The ultimate effect of a reduction in the money supply is:
a. a leftward shift of the aggregate demand curve
b. a rightward shift of the short-run aggregate supply curve.
c. a movement upward along the aggregate demand curve.
d. a movement downward along the aggregate demand curve.
e. a movement upward along the short-run aggregate supply curve.
a
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To calculate GDP using the value-added method, one would add up
A) the market value of intermediate goods and services produced during a particular period. B) the value added by each firm involved in the production of final goods and services. C) the market value of final goods and services produced during a particular period. D) only the value added by the underground economy.
When Goodyear increases its production when Michelin reduces its production, Goodyear is playing a
A) negative-sum game. B) cooperative game. C) non-cooperative game. D) reaction function game.