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    Principles of Macroeconomics Study Set 8
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    Exam 20: Aggregate Demand and Aggregate Supply: Explaining Short-Run Economic Fluctuations
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    According to Classical Macroeconomic Theory,changes in the Money Supply Affect
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According to Classical Macroeconomic Theory,changes in the Money Supply Affect

Question 3

Question 3

Multiple Choice

According to classical macroeconomic theory,changes in the money supply affect


A) real GDP and the price level.
B) real GDP but not the price level.
C) the price level,but not real GDP.
D) neither the price level nor real GDP.

Correct Answer:

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