An increase in the money supply will increase aggregate supply. increase aggregate demand. decrease aggregate supply. decrease aggregate demand.
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- Aggregate supply grows over time because of growing consumer and government spending. True or FalseAn increase in the money supply will cause which of the following to occur? OPTIONS: a rightward shift of the aggregate supply curve a leftward shift of the aggregate demand curve a leftward shift of the aggregate supply curve a rightward shift of the aggregate demand curveAn increase in aggregate demand will create a permanent increase in real GDP. True False
- If the economy experiences inflation and economic growth, this means that aggregate demand grows by more than aggregate supply. True or FalseAggregate Supply Curve may shift to right due to improvement in technologyWhich of the following is true: An decrease in the price level raises money demand and decreases the interest rate. A higher interest rate reduces investment and, thereby, the quantity of goods and services demanded. An increase in the money supply will ultimately lead to the aggregate demand curve shifting to the left. A decrease in the money supply will ultimately lead to the aggregate demand curve shifting to the right.
- According to the aggregate demand and aggregate supply model, in the long run an increase in the money supply leads to increases in both the price level and real GDP. an increase in real GDP but does not change the price level. an increase in the price level but does not change real GDP. no change in either the price level or real GDP.Complete the sentences with the correct term. Some options can be used more than once, and some may not be used at all. Cost-push inflation occurs when decreases until equilibrium output falls below the full employment level. Answer Bank As a result, the increases. aggregate price level One possible cause of cost-push inflation is an increase in imports cost of inputs To combat falling aggregate output, the government may introduce policies to increase short-run aggregate supply to where it and short-run aggregate supply intersect aggregate output at the same point. cost-push inflation These policies cause to return to its full employment level, aggregate demand long-run aggregate supply and the increases even further.Explain the likely effects of a U.S. boom on the demand for Canadian exports. What would be the effect on Canadian aggregate demand? Suppose the Bank of Canada viewed its monetary policy as being appropriate for keeping GDP of Canada close to potential GDP. What would you then predict to be the Central Bank's response to the foreign boom in U.S.?
- Find the aggregate supply when the aggregate demand is given as $888 billion.Please Define Aggregate supply in no more than 3 linesIf there is a temporary decrease in Aggregate Supply due to supply chain problems, • Prices will fall and output will rise • Prices will rise and output will fall • Prices and output will rise • Prices and output will fall.