The shift of the short-run aggregate-supply curve from SRAS1 to SRAS2 O causes the economy to experience an increase in the unemployment rate. O causes the economy to experience stagflation. O could be caused by a decrease in the expected price level. O could be caused by an outbreak of war in the Middle East.

For example, an increase in the money supply,(NORMINAL, REAL) a    variable, will cause the price level, a (NORMINAL, REAL)   variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a   (REAL, NORMINAL) variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as (MONETARY, THE QUANITY, PRICE)   .

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What is an impact of a temporary money expansion on the aggregate demand (AD) curve? The AD curve shifts upward. The AD curve shifts downward. The AD curve does not shift and the equilibrium point moves upward along the AD curve. The AD curve does not shift and the equilibrium point moves downward along the AD curve

If the aggregate price level rises, all else equal, consumers will: need more money to purchase the same basket of goods, which will lead to an increase in the demand for money, in turn pushing up interest rates and hence reducing the quantity of aggregate output demanded via a decrease in investment demand. demand less aggregate output at all price levels, resulting in a rightward shift right of the AD curve. find their purchasing power has increased and will purchase more goods and services, leading to an increase in aggregate output demanded. need less money to purchase the same basket of goods, which will lead to a decrease in the demand for money, in turn pushing down interest rates and hence increasing the quantity of aggregate output demanded via an increase in investment demand.

Use the diagram below. If the economy is initially at point C, to which point will it move if there is an increase in aggregate demand?   a) point Ab) point Bc) point Dd) point Ee) point F