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

question 41

Multiple Choice

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

• A)increases,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)falls,which increases real GDP and the price level

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Definitions:

Earnings Per Share

A company's profit divided by its number of common outstanding shares, indicating the company's profitability.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash.

Excess Cash

Funds that exceed the necessary operating and investment cash required by a business, often indicating potential for dividends, buybacks, or investments.