The economy can go into recession if there is O A) a decrease in SRAS. B) an increase in AD. C) an increase in LRAS. D) an increase in SRAS.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The economy can go into recession if there is
A) a decrease in SRAS.
B) an increase in AD.
C) an increase in LRAS.
D) an increase in SRAS.
Question 3
If the Fed decreases the supply of money in the country,
equilibrium money holdings will
and the equilibrium
interest rate will
A) increase; increase.
B) decrease; increase.
C) decrease; decrease.
D) increase; decrease.
Transcribed Image Text:The economy can go into recession if there is A) a decrease in SRAS. B) an increase in AD. C) an increase in LRAS. D) an increase in SRAS. Question 3 If the Fed decreases the supply of money in the country, equilibrium money holdings will and the equilibrium interest rate will A) increase; increase. B) decrease; increase. C) decrease; decrease. D) increase; decrease.
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