If wages are not as flexible as prices in the AD-AS model, an increase in money growth will lead to:
A) an increase in inflation and a rise in real long-run GDP growth.
B) an increase in inflation, but no rise in real short-run GDP growth.
C) an increase in inflation and in the profits of firms.
D) no change in inflation, but a fall in the profits of firms.
Correct Answer:
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