1) In the short run, an increase in the money supply is likely to lead to

a. higher unemployment and lower inflation.

b. higher unemployment and higher inflation.

c. lower unemployment and lower inflation.

d. lower unemployment and higher inflation.

2)

Table 4-2 Price Quantity Quantity Quantity Quantity (Dollars Demanded Demanded Demanded Demanded per Unit) (Units) (Units) (Units) (Units) Bert Ernie Grover Oscar 0.00 20 16 6 8 0.50 18 12 4 6 1.00 14 10 2 5 1.50 12 8 0 4 2.00 6 6 0 2 2.50 0 4 0 0 Refer to Table 4-2 . If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded O a. decreases by 24 units. 0 b. decreases by 1.75 units. 0 c. decreases by 7 units. 0 d. increases by 2 units