Suppose we are at a long-run equilibrium point in an AD-AS model.Then the money supply increases.In the short run,is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the model?
A) There is no difference.
B) In the SQTM version,the price level rises; in the monetarist version,it does not.
C) In the monetarist version,the price level falls; in the SQTM version,it does not.
D) In the monetarist version,the Real GDP rises; in the SQTM version,it does not.
E) In the SQTM version,Real GDP falls; in the monetarist version,it does not.
Correct Answer:
Verified
Q102: According to the simple quantity theory of
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A)
Q104: In the monetarist version of the AD-AS
Q105: According to the simple quantity theory of
Q106: Which of the following statements is false?
A)
Q108: Suppose we are at a long-run equilibrium
Q109: According to Milton Friedman,continued inflation is always
Q110: When Milton Friedman said that inflation is
Q111: One-shot inflation can be caused by
A) increases
Q112: The money supply falls from $1,200 billion
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