Suppose That the Money Prices of Raw Materials Increase So

question 14

Multiple Choice

Suppose that the money prices of raw materials increase so that short-run aggregate supply decreases.If the Federal Reserve does not respond,the higher money price of raw materials will
I.repeatedly shift the aggregate demand curve rightward and raise the price level.
Ii.shift the aggregate demand curve rightward and the aggregate supply curve leftward,raising prices.
Iii.result initially in lower employment and a higher price level.

• A)i only
• B)both i and ii
• C)both ii and iii
• D)i and iii
• E)iii only

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Definitions:

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Individuals from whom one is descended, typically further back than grandparents.

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The habitual ways in which individuals exchange information, ideas, and feelings with others.

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The habitual ways in which individuals process and respond to auditory information, reflecting their preferences and tendencies in communication.

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Constructs relating to or involving emotions and feelings.