An increase in the money supply when the economy is experiencing significant unemployment would lead primarily to an increase in:

Question

Quizplus · Accepted Answer

When the economy is experiencing significant unemployment, an increase in the money supply typically leads to an increase in total output. This is because more money in the economy encourages spending and investment, which in turn stimulates demand for goods and services, leading to higher production and employment.

An Increase in the Money Supply When the Economy Is