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Question
The long-run effect of an increase in the money supply when starting from full employment is to
A) increase real GDP only.
B) increase the price level only.
C) increase both real GDP and the price level.
D) increase real GDP as the price level increases too.
Answer
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Related questions
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The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.