12. When the Federal Reserve increases the money supply, at a given price level the amount...

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12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded and the aggregate demand curve shifts greater, inward is a b greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a Money supply b. Unemployment rate c. Interest rate d. Price level 14. If a short-run equilibrium occurs at a level of output above the natural level, then in the transition to the long and output will run prices will a Increase; increase b. Decrease; decrease c. Increase; decrease d. Decrease; increase 15. Assume that the economy beings in the long-run equilibrium. Then the Fed reduces the money supply. In the short run and output returns to its original level whereas in the long run prices, a Output decreases and prices are unchanged, rise b. Output decreases and prices are unchanged, fall c. Output and prices both decrease, rise d. Output and prices both decrease, fall 16. In the solow growth model with population growth, but no technological change, a higher level of steady-state output per worker can be obtained all of the following except: a increasing the saving rate b. decreasing the depreciation rate c. increasing the population growth rate d. increasing the capital per worker ratio 17. Suppose that two countries are exactly alike in every respect except that population grows at a faster rate in country A than in country B a. Which country will have the higher level of output per worker in the steady state? Illustrate graphically. b. Which country will have the faster rate of growth of output per worker in the steady state? 12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded and the aggregate demand curve shifts greater, inward is a b greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a Money supply b. Unemployment rate c. Interest rate d. Price level 14. If a short-run equilibrium occurs at a level of output above the natural level, then in the transition to the long and output will run prices will a Increase; increase b. Decrease; decrease c. Increase; decrease d. Decrease; increase 15. Assume that the economy beings in the long-run equilibrium. Then the Fed reduces the money supply. In the short run and output returns to its original level whereas in the long run prices, a Output decreases and prices are unchanged, rise b. Output decreases and prices are unchanged, fall c. Output and prices both decrease, rise d. Output and prices both decrease, fall 16. In the solow growth model with population growth, but no technological change, a higher level of steady-state output per worker can be obtained all of the following except: a increasing the saving rate b. decreasing the depreciation rate c. increasing the population growth rate d. increasing the capital per worker ratio 17. Suppose that two countries are exactly alike in every respect except that population grows at a faster rate in country A than in country B a. Which country will have the higher level of output per worker in the steady state? Illustrate graphically. b. Which country will have the faster rate of growth of output per worker in the steady state?

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