Which of the following represents the medium- run effect of an increase in the price target?
A) An increase in the price level.
B) An increase in the real money supply.
C) An increase in the real wage.
D) An increase in output.
E) An increase in the interest rate.

Question

Quizplus · Accepted Answer

In the medium run, an increase in the price target typically leads to an increase in the price level as the economy adjusts to the new target.

Which of the Following Represents the Medium- Run Effect of an Increase