Assuming money neutrality in the classical model, a 10% increase in the nominal money supply would cause
A) a 10% increase in the real money supply.
B) a 10% decrease in the real money supply.
C) no change in the real money supply.
D) a less-than-10% change in the price level due to a shift in the aggregate supply curve.
C
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Once the Phillips curve has shifted up, the economy is ________ because ________
A) better off; every unemployment rate becomes associated with a higher inflation rate B) better off; every inflation rate becomes associated with a lower unemployment rate C) worse off; every inflation rate becomes associated with a higher unemployment rate D) worse off; every unemployment rate becomes associated with a lower inflation rate
According to the classical dichotomy, which of the following is not influenced by monetary factors?
a. the price level b. real GDP c. nominal interest rates d. All of the above are correct.