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Unformatted text preview: more when they are higher than expected. 7. The short run output and price level will both increase. If the Fed increased the money supply without the public knowing then the price level would remain the same and the output would increase. 11. a. Output and pricelevel would decrease. b. output would decrease, price level would remain the same. c. Output will increase and Price level will go down. d. Output will remain the same and price level will go up....
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This note was uploaded on 04/08/2008 for the course ECON 1002 taught by Professor Rissell during the Spring '08 term at Villanova.
- Spring '08