Suppose the Economy Currently Has Some Underutilized Resources

question 333

Multiple Choice

Suppose the economy currently has some underutilized resources. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to

• A) increase aggregate demand, increase prices and increase real GDP.
• B) increase aggregate demand, increase prices and decrease real GDP.
• C) increase short-run aggregate supply, decrease in prices and decrease in real GDP.
• D) increase short-run aggregate supply, decrease prices and increase real GDP.

---

Definitions:

Spiritual

Pertaining to or involving deep feelings and beliefs, especially in relation to one’s sense of peace, purpose, and connection to the universe, religion, or nature.

Prosocial

relates to behavior that is intended to benefit others, including acts of kindness, sharing, and cooperative actions.

Charitable

Describes actions or organizations that are dedicated to helping those in need, often through donations or volunteer work.

Conscientious

Describes a person or behavior that is guided by or showing a desire to do what is right, typically characterized by carefulness and diligence.