I believe I choose the right answer for all of the following questions, but I just want to make sure.
1. In the long, changes in the money supply affect
a)Prices
b)Output
c)Unemployment Rates
d)All of the above
I choose A as my answer for this one.
2.According to the classical dichotomy, when the money supply doubles, which of the following also double?
a)the price level and nominal wages.
b)the price level, but not the nominal wage
c)the nominal wage, but not the price level
d)neither the nominal wage nor the price level
I choose A as my answer for this one.
3.Imagine that businesses in general believe that the economy is likely to head into recession and so they reduce capital purchases. Their reaction would initially shift
a)aggregate demand right
b)aggregate demand left
c)aggregate supply right
d)aggregate supply left
I choose A for my answer for this one as well.
Are these the right answers for all of these questions?
Macroeconomics Questions?
1 %26amp; 2 are right,
3 sounds right too, but I am not sure.
Macroeconomics Questions?
loan
1 is definitely right
2 is right in the long run
3 is B! AD is going to shift left if there are less purchases!|||1. A
2. A
3. B AD= C + I ( decrease) + G + NX
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