Multiple Choice
If the short-run macroeconomic equilibrium occurs in the upward-sloping range of the short-run aggregate supply curve and the Federal Reserve increases the money supply, then which of the following will be true in the long run?
A) The nominal wage of workers will be lower compared to what it was in the short run.
B) Output will be higher compared to what it was in the short run.
C) The nominal wage of workers will be higher compared to what it was in the short run.
D) The price level will be lower compared to what it was in the short run.
Correct Answer:

Verified
Correct Answer:
Verified
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