The short-run effect of an increase in the money supply is to
A) increase real GDP only.
B) increase the price level only.
C) increase both real GDP and the price level.
D) increase nominal GDP but decrease the price level.
C
Economics
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According to new Keyneisan theory, real wages are _____ correlated with employment and the portion of the population that is not in the labor market _____ with higher real wages
a. positively; rises. b. negatively, does not change. c. negatively, rises. d. positively; falls. e. none of the above.
Economics
A firm may find it optimal to stay in business in the short run even if total revenue does not cover total cost
a. True b. False
Economics