According to your textbook, through what channel does monetary policy real GDP a

Question

According to your textbook, through what channel does monetary policy real GDP and the price level? A) If the money supply increases, interest rates fall, causing Investrmenp and an 46. influence the level of causes Aggregate Demand to rise, resulting in an increase to rise, which increase in the Price Level. B) If the money supply increases, interest rates fall, causing mPand an C) If the D) If the money increases, causes Aggregate Demand to fall, resulting in a decrease Real GDP and an increase in the Price Level. Real GDP and a decrease in the Price Level all, which causes an increase in Aggregate Demand, resultin Real ciop ansupdaly ply wll li, rsatig in an thioh y supply increases, Aggregate Supply will rise, causing interest rates to g in an increase in Real GDP and a decrease in the Price Level 47. What type( s) of unemployment may be present when the unemployment rate is equal to its natural rate? A) None B) Structural and Frictional C Frictional, Cyclical, and Structural D) Cyclical

Explanation / Answer

46) The correct answer to this question is "A". A rise in the money supply will cause the interest rates to fall which in return will cause the investment will rise. An increased investment will increase the demand and cause the price to rise.

47) "B" Natural rate of unemployment contains the two type of unemployment structural and frictional. At that time some people may be leaving their old jobs and searching for new jobs causing frictional unemployment, some people may be unfit for jobs because of change in technology causing structural unemployment.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.