In which case can we be sure that real GDP rises in the short run?
A)foreign economies expand and the money supply increases
B)foreign economies expand and the money supply decreases
C)foreign economies contract and the money supply decreases
D)None of the above are correct.

Question

Quizplus · Accepted Answer

When foreign economies expand, demand for a country's exports increases, leading to an increase in real GDP. Additionally, an increase in the money supply increases spending, which can lead to an increase in real GDP in the short run.

In Which Case Can We Be Sure That Real GDP