Although the Increase in Long-Run Aggregate Supply (Other Things Equal)

question 31

Multiple Choice

Although the increase in long-run aggregate supply (other things equal) , would expand real GDP and lower the price level, the declines in the price level has not been part of Canada's growth experience.This is because:

• A)the Bank of Canada has taken no action to change the nation's money supply.
• B)the Bank of Canada has increased the money supply much less than the increase in aggregate supply.
• C)the increase in the money supply by Bank of Canada has matched the increase in aggregate supply.
• D)the Bank of Canada usually engineers inflationary rightward shifts of the aggregate demand curve that are faster than the deflationary rightward shifts of the aggregate supply curve.

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Definitions:

Political Function

The role an entity or process serves within the arena of politics, often related to governance, decision-making, or influence.

Blake and Mouton

Creators of the Managerial Grid Model, which emphasizes two dimensions of leadership style: concern for people and concern for production, used for understanding and categorizing management or leadership styles.

Managerial styles

The various approaches, techniques, and behaviors managers use to interact with employees, make decisions, and direct operations within an organization.

Production

The process of creating, manufacturing, or producing goods and services to fulfill consumer needs and wants.