Multiple Choice
Suppose we are at a long-run equilibrium point in an AD-AS model.Then the money supply increases.In the short run,is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the model?
A) There is no difference.
B) In the SQTM version,the price level rises; in the monetarist version,it does not.
C) In the monetarist version,the price level falls; in the SQTM version,it does not.
D) In the monetarist version,the Real GDP rises; in the SQTM version,it does not.
E) In the SQTM version,Real GDP falls; in the monetarist version,it does not.
Correct Answer:

Verified
Correct Answer:
Verified
Q70: The simple quantity theory of money predicts
Q71: If the money supply is $2,000,velocity is
Q72: If GDP is $8,000 billion and the
Q73: The aggregate supply curve is depicted as
Q74: Refer to Exhibit 14-2.The economy moves from
Q76: Between 1890 and 1914,the gold stock of
Q77: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6439/.jpg" alt=" -Refer to Exhibit
Q78: If the nominal interest rate is 7
Q79: In the equation of exchange,GDP divided by
Q80: In a country in which the government