Monetary neutrality means that a change in the money supply
a. does not change real variables. Most economists think this is a good description of the economy in the short run and in the long run.
b. does not change real variables. Most economists think this is a good description of the economy in the long run but not the short run.
c. does not change nominal variables. Most economists think this is a good description of the economy in the short-run and the long run.
d. does not change nominal variables. Most economists think this is a good description of the economy in the long run but not the short run.
b
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Which of the following is the BEST example of a common resource?
A) a can of Mountain Dew B) fish in the ocean C) cable television D) national defense
What is the relationship between real and nominal GDP?
a. real GDP = nominal GDP – Price level b. nominal GDP = Real GDP/Price level c. real GDP = nominal GDP/Price level d. real GDP = nominal GDP + Price level.