Suppose the Short-Run Aggregate Supply Curve Is Positively Sloped and the Money

question 102

Multiple Choice

Suppose the short-run aggregate supply curve is positively sloped and the money supply increases.What is the effect on aggregate demand?  

• A) Aggregate demand increases, which increases real GDP and increases the price level. 
• B) Aggregate demand increases, which decreases real GDP and decreases the price level. 
• C) Aggregate demand falls, which increases real GDP and increases the price level. 
• D) Aggregate demand falls, which decreases real GDP and increases the price level.

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Definitions:

Capsids

Protein shells that encase the genetic material of a virus, protecting it and aiding in its transmission.

Chromatids

Each of the two thread-like strands into which a chromosome divides longitudinally during cell division. Each contains a double helix of DNA.

Rotating Flagella

Hair-like structures that protrude from the cell body of certain bacterial cells, rotating like propellers to enable movement.

Cilia

Microscopic, hair-like structures that extend from the surface of many animal cells, involved in movement and sensory functions.