Multiple Choice
How might changes in the money supply be non-neutral in the short run?
A) As the amount of money circulating in the economy changes before prices respond,the purchases of consumers change accordingly,which leads producers to change production levels.
B) When money supply changes in the short run,it will affect nominal,but not real,variables in the short run.
C) As money growth increases at a faster rate,it will cause real GDP to grow at an even faster rate.
D) If producers expect inflation to increase,they will increase supply in order to sell before the arrival of inflation.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Changes in money velocity and GDP are
Q13: Inflation tends to cause nominal wages to:<br>A)
Q14: If the growth rate of the money
Q15: The price level at the end of
Q16: When disinflation arises unexpectedly,the real interest rate
Q18: Because of money illusion,inflation usually confuses:<br>A) consumers.<br>B)
Q19: What effect did reducing U.S.inflation from 13.5%
Q20: The price of phone calls has risen
Q21: If the CPI for this year is
Q22: A decrease in the inflation rate from