According to the simple quantity theory of money in the AD-AS framework, when the money supply increases, the result is __________ in Real GDP and __________ in the price level

A) no change; no change
B) a rise; no change
C) no change; a rise
D) a rise; a fall
E) a fall; a rise


C

Economics

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The decreasing portion of a firm's long run average cost curve is attributable to:

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The personal income tax is the single largest source of revenue for the federal government

a. True b. False Indicate whether the statement is true or false

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Suppose that country A pegs its currency to that of country B. Now suppose that there is an adverse demand shock in country A. Country B is more likely to cooperate and increase its money supply in response to country A's adverse demand shock when:

A) country B's output is below its preferred level. B) country B is experiencing high rates of inflation. C) country B wants country A to devalue its currency. D) country A is experiencing high rates of inflation.

Economics