If the Short-Run Aggregate Supply Curve Is Horizontal and the Bank

question 84

Multiple Choice

If the short-run aggregate supply curve is horizontal and the bank of Canada increases the money supply,then:

• A) output and employment will increase in the short run.
• B) output and employment will decrease in the short run.
• C) prices will increase in the short run.
• D) prices will decrease in the short run.

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