In the long- run, an increase in the money supply will cause output:
A) to remain the same.
B) to increase.
C) to fluctuate up and down.
D) to decrease.

Name: In the long- run, an increase in the money supply will cause output: A) to remain the same. B) to increase. C) to fluctuate up and down. D) to decrease.
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Question

Quizplus · Accepted Answer

In the long run, an increase in the money supply affects prices rather than output, as output is determined by real factors like technology and resources, according to classical economic theory.

In the Long- Run, an Increase in the Money Supply