Suppose That the Economy Is Operating at Potential Output and the Money

question 63

Multiple Choice

Suppose that the economy is operating at potential output and the money supply increases. Aggregate output will _____ potential output, nominal wages will _____, and the SRAS will shift _____.

• A) rise above; rise; leftward
• B) fall below; rise; leftward
• C) rise above; fall; leftward
• D) rise above; rise; rightward

---

Definitions:

Data Sets

Collections of related data points, observations, or variables organized for analysis.

Sources of Cash

Various origins from which a company or individual may receive cash, such as operations, financing activities, and investing activities.

Cash and Accounts Receivable

Liquid assets comprising of cash available and money owed by customers to a company for goods or services provided.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases or services received.