Objective questions - macroeconomics

Reference no: EM1374410

1) If the Fed printed too much money, money's relative price would _________ and the money price of goods would ___________.
[A] fall; increase
[B] increase; fall
[C] fall; fall
[D] increase; increase

2) If workers begin to expect more inflation in the future, then we would expect that:
[A] the short-run aggregate supply curve will shift up.
[B] the short-run aggregate supply curve will shift down.
[C] the short-run aggregate supply curve will not shift.
[D] the aggregate demand curve will shift left.

3) A fiscal policy that reduces a budget deficit could conceivably __________ income if interest rates ______________.
[A] rise; fall enough
[B] rise; rise enough
[C] decrease; fall too much
[D] decrease; rise enough

Reference no: EM1374410

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