1 .Which of the following, other things the same, would make the price level decrease and...

1 .Which of the following, other things the same, would make the price level decrease and real GDP increase? a. long-run aggregate supply shifts right b. long-run aggregate supply shifts left c. aggregate demand shifts right d. aggregate demand shifts left

2. Other things the same, an increase in the price level induces people to hold

less money, so they lend less, and the interest rate rises.

less money, so they lend more, and the interest rate falls.

more money, so they lend more, and the interest rate falls.

more money, so they lend less, and the interest rate rises.

Solutions

Expert Solution

1): B is right option

long-run aggregate supply shifts left

Aggregate Supply Curve is defined as total amount of goods and services that all industries in the economy will produce at every given price level / The sum of the supply curves of all the industries in the economy

2) :-B is right option

less money, so they lend more, and the interest rate falls

I am little confuse in 1 question SO if b is Wrong then its may A is right option

If you are satisfied with a answer plz Upvote thank you

Rahul Sunny answered 1 year ago

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