Multiple Choice
Starting from short-run equilibrium,the following occurs: the money supply increases and labor productivity increases.What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises.
B) Real GDP rises and the price level necessarily rises.
C) Real GDP rises and the effect on the price level cannot be determined.
D) Real GDP falls and the effect on the price level cannot be determined.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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