According to the AS/AD Model, in the Short Run an Increase

question 182

Multiple Choice

According to the AS/AD model, in the short run an increase in the federal funds rate will

• A) decrease the price level and decrease real GDP.
• B) increase the price level and decrease real GDP.
• C) decrease the price level but leave real GDP unchanged.
• D) decrease real GDP but leave the price level unchanged.

---

Definitions:

Sales Goals

Specific objectives set by a business related to the amount of product or services sold within a particular timeframe.

Proprietorship

A type of business entity owned and run by one individual, with no distinction between the business and the owner.

Personal Loans

Unsecured loans given to individuals based on their credit score and other factors, used for personal expenses.

Debts

Money that is owed or due to another individual or entity.