Figure 10.1
-In Figure 11.1 the interaction of the money supply and money demand determines:
A)real GDP.
B)the price level.
C)growth rate of the economy.
D)all of the above.

Question

Figure 10.1 
-In Figure 11.1 the interaction of the money supply and money demand determines:
A)real GDP. 
B)the price level. 
C)growth rate of the economy. 
D)all of the above.

Quizplus · Accepted Answer

The interaction of the money supply and money demand determines the price level, as shown by the vertical line in Figure 11.1. Real GDP and the growth rate of the economy are influenced by a variety of factors, such as technology, labor force participation, and government policies, among others.

Figure 10.1 -In Figure 11.1 the Interaction of the Money Supply and Money