Multiple Choice
Suppose the economy is at full employment. An increase in the money supply will _______ in the short run and _______ in the long run.
A) increase investment, increase investment
B) increase investment, leave investment unchanged
C) decrease investment, decrease investment
D) leave investment unchanged, leave investment unchanged
Correct Answer:
Verified
Correct Answer:
Verified
Q3: A decrease in government spending will lead
Q4: What is Say's Law?
Q5: In order for the long- run neutrality
Q6: Classical economists believe that recessions are self
Q7: Money is neutral both in the short
Q9: Those who believe that wages adjust quickly
Q10: Increased government spending will not cause investments
Q11: A wage- price spiral can occur if
Q12: If the Say's Law holds true, then
Q13: Along a Keynesian short- run supply curve,