-If the Economy's Aggregate Demand and Supply Curves Are AD₁

question 51

Multiple Choice

-If the economy's aggregate demand and supply curves are AD₁ and AS₁,an increase in the money supply will:

• A) lower total real output and raise the price level as aggregate supply shifts from AS₁ to AS₀.
• B) lower total real output and leave the price level unchanged because AD₁ will shift to AD₀.
• C) raise total real output but not the price level, for aggregate supply will shift from AS₁ to AS₂.
• D) raise both total real output and the price level as aggregate demand shifts from AD₁ to AD₂.
• E) raise the price level but leave total real output unchanged, as aggregate demand shifts from AD₁ to AD₂ and aggregate supply shifts from AS₁ to AS₀.

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Definitions:

Industrial Accidents

Unplanned events that result in injury, illness, or damage, occurring in or related to a workplace or industrial setting.

Agency

An organization, either public or private, that provides a specific service or performs a designated function.

Hospital Codes

A system of signals, often numerical or color-coded, used in hospitals to quickly communicate emergencies and situations without alarming patients.

Procedures

Established methods or sequences of steps followed in a consistent and systematic way for the accomplishment of a task or an operation.