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Homework answers / question archive / If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply, aggregate demand _____   a

If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply, aggregate demand _____   a

Economics

If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply, aggregate demand _____

  a.

falls, which increases real GDP and the price level.

  b.

increases, which increases real GDP and the price level.

  c.

falls, which decreases real GDP and increases the price level.

  d.

increases, which decreases real GDP and increases the price level.

  e.

increases, which decreases real GDP and the price level.

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