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Most Economists Believe That in the Short Run

Question 35

Multiple Choice

Most economists believe that in the short run


A) real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend.
B) real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend.
C) real and nominal variables are highly intertwined but that money cannot move real GDP away from its long-run trend.
D) real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.

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