Which of the following shifts aggregate demand right?
A. The price level rises.
B. The price level falls.
C. The money supply rises.
D. Both a and b are correct.
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The long-run aggregate supply curve shifts right if
A. Congress raises the minimum wage substantially.
B. unemployment insurance benefits are made more generous.
C. immigration from abroad increases.
D. All of the above are correct.
Suppose a shift in aggregate demand creates an economic contraction. If policymakers can respond with sufficient speed and precision, they can offset the initial shift by shifting aggregate
A. supply left.
B. supply right.
C. demand left.
D. demand right.
If the stock market booms household spending
A. increases. To offset the effects of this on the price level and real GDP, the Fed would increase the money supply.
B. increases. To offset the effects of this on the price level and real GDP, the Fed would decrease the money supply.
C. decreases. To offset the effects of this on the price level and real GDP, the Fed would increase the money supply.
D. decreases. To offset the effects of this on the price level and real GDP, the Fed would decrease the money supply.
The supply of loanable funds comes from
A. national saving. Demand for loanable funds comes from only domestic investment.
B. national saving. Demand for loanable funds comes from domestic and net foreign investment.
C. only net foreign investment. Demand for loanable funds comes from national saving.
D. domestic investment and net foreign investment. Demand for loanable funds comes from national saving.
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