If the money supply is currently at MS 1 and the central bank chooses to buy bon
ID: 1097417 • Letter: I
Question
If the money supply is currently at MS1 and the central bank chooses to buy bonds, then the resulting short-run shift in the supply of savings (loanable funds) may be represented by a shift of the:
39. When actual output is above potential output over time: a.nominal wages will increase, and the short-run supply curve will shift to the right. b. nominal wages will increase, and the short-run supply curve will shift to the left. c. the aggregate demand curve will shift to the right. d. the short-run aggregate supply curve will shift to the right.Explanation / Answer
nominal wages will increase, and the short-run supply curve will shift to the left.
via changes in deposit insurance maximums
there will be an increase in the aggregate output level in the long run.
interest rate from r2 to r1.
a. contractionary; raise; left
selling longer-term government debt.
will want to equalize the federal funds rate and the discount rate
increases in the money supply raise real GDP and the price level.