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Question
Expansionary monetary policy during periods of underutilized resources can cause
A) real Gross Domestic Product (GDP) to increase without an increase in the price level.
B) real Gross Domestic Product (GDP) to increase with a decrease in the price level.
C) real Gross Domestic Product (GDP) to increase with an increase in the price level.
D) nominal Gross Domestic Product (GDP) to increase but cannot affect real Gross Domestic Product (GDP).
Answer
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