If the Short-Run Aggregate Supply Curve Is Positively Sloped and the Fed

question 50

Multiple Choice

If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply,aggregate demand:

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

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