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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