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  3. Study Set
    Financial System and the Economy Principles
  4. Exam
    Exam 22: Aggregate Demand and Aggregate Supply
  5. Question
    In the AD/AS Framework, an Unexpected Increase in the Money
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In the AD/AS Framework, an Unexpected Increase in the Money

Question 3

Question 3

Multiple Choice

In the AD/AS framework, an unexpected increase in the money supply and a resulting increase in aggregate demand, causes nominal wages


A) to remain unchanged.
B) to decrease.
C) to start to rise, but at a slower rate than prices.
D) to fluctuate wildly.

Correct Answer:

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