In the Short-Run Macro Model,an Increase in the Money Supply

question 163

Multiple Choice

In the short-run macro model,an increase in the money supply will

• A) move the economy to the right along the aggregate expenditure line.
• B) move the economy to the left along the aggregate expenditure line.
• C) shift the aggregate expenditure line upward.
• D) shift the aggregate expenditure line downward.
• E) cause the aggregate expenditure line to rotate until it is flat.

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used by businesses and governments to plan financial activities and resource allocations.

Strategy

A high-level plan or set of actions designed to achieve long-term objectives or overall goals in a competitive context.

First-Mover Advantage

The competitive advantage gained by a company that first introduces a product or service to the market, often leading to high brand recognition and customer loyalty.

Prospector

A strategy or role in business or management characterized by a focus on innovation, risk-taking, and the exploration of new markets or opportunities.