Multiple Choice
In the AD-AS model,an unexpected increase in the growth rate of the money supply:
A) decreases both the inflation and real growth rates in the short run.
B) increases both the inflation and real growth rates in the short run.
C) decreases both the inflation and real growth rates in the long run.
D) increases both the inflation and real growth rates in the long run.
Correct Answer:

Verified
Correct Answer:
Verified
Q120: Using a graph of the AD and
Q121: Deflation can cause the economy's aggregate demand
Q122: Decreased import growth represents a positive AD
Q123: Business fluctuations are fluctuations in the:<br>A) level
Q124: The aggregate demand curve shows the relationship
Q126: Increased spending growth shifts the AD curve
Q127: An increase in inflation immediately causes a
Q128: The slope of the aggregate demand curve
Q129: What was one of the federal government
Q130: Business fluctuations are variations in:<br>A) real income