If the short-run aggregate supply curve is horizontal and the Bank of Canada increases the money supply, then:
A) output and employment will increase in the short run.
B) output and employment will decrease in the short run.
C) prices will increase in the short run.
D) prices will decrease in the short run.
Correct Answer:
Verified
Q42: A supply shock does not occur when:
A)a
Q43: Exhibit: Supply Shock Q44: Holding output, Y, fixed, a reduction in Q45: Starting from long-run equilibrium, if the velocity Q48: Exhibit: Shift in Aggregate Demand Q49: Monetary neutrality is a characteristic of the Q50: Assume that the economy starts from long-run Q51: Which of the following is an example Q65: When the French money supply was reduced Q71: If the short-run aggregate supply curve is
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