Question add question here multiple choice 1 points

This preview shows page 12 - 14 out of 29 pages.

Question Add Question Here Multiple Choice 1 points Question If the short-run aggregate supply curve is horizontal and the long-run aggregate supply curve is vertical, then a change in the money supply will change ______ in the short run and change ______ in the long run. Answer only prices; only output only output; only prices both prices and output; only prices both prices and output; both prices and output Add Question Here Multiple Choice 1 points Question In the aggregate demand–aggregate supply model, long-run equilibrium occurs at the combination of output and prices where: Answer aggregate demand is greater than long-run aggregate supply. aggregate demand equals short-run aggregate supply. aggregate demand equals short-run and long-run aggregate supply. short-run aggregate supply equals long-run aggregate supply. If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ______ and output will ______. Answer increase; increase decrease; decrease increase; decrease decrease; increase Multiple Choice 1 points Question If a short-run equilibrium occurs at a level of output below the natural rate, then in the transition to the long run prices will ______ and output will ______. Answer increase; increase decrease; decrease increase; decrease decrease; increase Add Question Here Multiple Choice 1 points Question Add Question Here Multiple Choice 1 points of 29 12/8/2012 11:39 م
10 Pool Canvas folder (10)/CourseComp... If the short-run aggregate supply curve is horizontal and the Fed increases the money supply, then: Answer output and employment will increase in the short run. output and employment will decrease in the short run. prices will increase in the short run. prices will decrease in the short run. Add Question Here Multiple Choice 1 points Question Assume that the economy starts from long-run equilibrium. If the Federal Reserve increases the money supply, then ______ increase(s) in the short run and ______ increase(s) in the long run. Answer prices; output output; prices output; output prices; prices Add Question Here Multiple Choice 1 points Question Assume that the economy begins in long-run equilibrium. Then the Fed reduces the money supply. In the short run ______, whereas in the long run prices ______ and output returns to its original level. Answer output decreases and prices are unchanged; rise output decreases and prices are unchanged; fall output and prices both decrease; rise output and prices both decrease; fall Add Question Here Multiple Choice 1 points Question Monetary neutrality is a characteristic of the aggregate demand–aggregate supply model in: Answer both the short run and the long run. in neither the short run nor the long run. in the short run, but not in the long run. in the long run, but not in the short run.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture