In the aggregate demand and aggregate supply model, an increase in the growth rate of the velocity of money differs from an increase in money supply growth rate in that:

A. the SRAS curve will eventually shift back to its original position after an increase in money supply growth.
B. the AD curve will eventually shift back to its original position after an increase in velocity growth.
C. the SRAS curve will eventually shift upwards after an increase in velocity growth.
D. the AD curve will eventually shift back to its original position after an increase in money supply growth.


Answer: B. the AD curve will eventually shift back to its original position after an increase in velocity growth.

Economics

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