According to the model of aggregate supply and aggregate demand, in the long run, an increase in the money supply should cause
A. prices to rise and output to remain unchanged.
B. prices to fall and output to fall.
C. prices to rise and output to rise.
D. prices to fall and output to remain unchanged.
Answer: A. prices to rise and output to remain unchanged.
Economics
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The maximum price that a buyer is willing to pay for a good measures his
A) producer surplus. B) willingness to pay. C) consumer surplus. D) marginal benefit.
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When numerous but imperfect substitutes exist for a good, the demand for the good will tend to be
A) inelastic. B) elastic. C) unitary. D) perfectly elastic.
Economics