Expert Answer :Purdue AGEC 21700 – Which of the following best de

Solved by a verified expert :Which of the following best describes what happened in the Goods Market of the U.S. economy in 1907? a. Aggregate demand increased, output and the price level increased, and output was above potential. b. Aggregate demand decreased, output and the price level decreased, but output remained above potential. c. Aggregate supply increased, output increased and the price level decreased, and output was above potential. d. Aggregate supply decreased, output decreased and the price level increased, but output remained above potential. e. Aggregate supply decreased, output decreased and the price level increased, and output fell below potential. What does the change in money demand (if any) and the change in the real interest rates from 1907 to 1908 imply for the change in money supply in 1908?a.Money supply must have increased.b.Money supply must have decreased.c.Money supply probably didn’t change. Which of the following best describes what happened in the Goods Market of the U.S. economy in 1908? a. Aggregate demand increased, output and the price level increased, and output was above potential. b. Aggregate demand decreased, output and the price level decreased, but output remained above potential. c. Aggregate demand decreased, output and the price level decreased, and output was below potential. d. Aggregate supply increased, output increased and the price level decreased, and output was above potential. e. Aggregate supply decreased, output decreased and the price level increased, and output fell below potential. Which of the following best describes what happened in the Goods Market of the U.S. economy in 1909? a. Aggregate demand increased, output and the price level increased, and output approached potential. b. Aggregate demand decreased, output and the price level decreased, and output fell further below potential. c. Aggregate supply decreased, output and the price level decreased, and output fell further below potential. d. Aggregate supply increased, output increased and the price level decreased, and output moved above potential. e. Aggregate supply increased, output increased and the price level decreased, and output approached potential.