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What will happen if there is a decrease in interest rates at the same time that...

What will happen if there is a decrease in interest rates at the same time that there is an increase in wage rates, and AD shifts by more than SRAS shifts?

The price level will and Real GDP will .

j. What will happen if there is a decrease in the value of the U.S. dollar at the same time that there is a decrease in prices of nonlabor inputs, and AD and SRAS shift by the same amounts?

The price level will and Real GDP will

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Answer #1

What will happen if there is a decrease in interest rates at the same time that there is an increase in wage rates, and AD shifts by more than SRAS shifts?

The price level will     rise    , Real GDP will     rise    , and the unemployment rate will     fall    .

j.          What will happen if there is a decrease in the value of the U.S. dollar at the same time that there is a decrease in prices of nonlabor inputs, and AD and SRAS shift by the same amounts?

The price level will     stay the same    , Real GDP will     rise    , and the unemployment rate will     fall    .

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