A) Decrease Aggregate Demand from AD $$A D _ { 1 } \text { to } A D _ { 2 }$$

question 380

Multiple Choice

• A) decrease aggregate demand from AD \[A D _ { 1 } \text { to } A D _ { 2 }\]
• B) increase the money supply from $75 to $150 billion
• C) increase interest rates from 4 to 8 percent
• D) make no change in monetary policy

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Definitions:

Inflation

A universal surge in prices and a dip in the value of monetary assets.

Real GDP

The measure of a country's economic output adjusted for price changes or inflation.

Value Added

The increase in the value of a product or service as a result of a particular process, excluding the costs of raw materials and energy.

Intermediate Products

Intermediate products are goods that are used as inputs in the production of other goods or services, rather than being sold directly to consumers.