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please help Consider the following statement: %u201CAggregate supply factors det

ID: 1177070 • Letter: P

Question

please help

Consider the following statement: %u201CAggregate supply factors determine a nation%u2019s potential GDP whereas aggregate demand factors determine whether or not the nation achieves its full employment GDP.%u201D

This statement is


not accurate because aggregate supply factors determine how much an economy can produce, and aggregate demand influences the ability to purchase.
accurate because aggregate supply factors determine the ability to purchase, and aggregate demand determines how much an economy can produce.
not accurate because aggregate supply factors determine the ability to purchase, and aggregate demand determines how much an economy can produce.
accurate because aggregate supply factors determine how much an economy can produce, and aggregate demand influences the ability to purchase.


If there is an increase in the nation%u2019s money supply, the interest rate will


rise, investment spending will fall, aggregate demand will shift right, real GDP will rise, and the price level will fall.
rise, investment spending will fall, aggregate demand will shift right, real GDP will fall, and the price level will rise.
fall, investment spending will rise, aggregate demand will shift right, real GDP will rise, and the price level will fall.
fall, investment spending will rise, aggregate demand will shift right, and real GDP and the price level will rise.


The Federal funds rate is


nearly the same as the prime interest rate because they are both short term loans.
higher than the prime interest rate because it is more risky to lend overnight.
ower than the prime interest rate because federal funds are loaned overnight.
not comparable to the prime interest rate since the lenders are different
thank you

Explanation / Answer

1. d)

2. d)

3. d)