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-In the Above Figure, Suppose the Economy Starts at Point

Question 262

Multiple Choice

-In the above figure, suppose the economy starts at point A. The short-run response to an increase in the growth rate of the quantity of money in the monetarist business cycle theory is for the price level to ________ and real GDP to ________. A) fall to 90; remain at $18 trillion B) rise to 120; increase to $19 trillion C) rise to 130; remain at $18 trillion D) remain at 110; remain at $18 trillion
-In the above figure, suppose the economy starts at point A. The short-run response to an increase in the growth rate of the quantity of money in the monetarist business cycle theory is for the price level to ________ and real GDP to ________.


A) fall to 90; remain at $18 trillion
B) rise to 120; increase to $19 trillion
C) rise to 130; remain at $18 trillion
D) remain at 110; remain at $18 trillion

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