In the Long Run, One-Time Increases or Decreases in the Nominal

question 29

Multiple Choice

In the long run, one-time increases or decreases in the nominal money supply affect

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

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Definitions:

Rational Choice Theorists

Scholars who explain social interactions and structures through the lens of individual decisions, assuming people act based on cost-benefit analyses.

Socially Defined

Refers to how society and culture assign meanings, roles, and values to individuals or groups, often influencing their behavior and interactions.

Preferences

Describes the individual choices or inclinations people have towards certain options, behaviors, or objects over others.

Behaviorism

A psychological approach that emphasizes the study of observable behavior and the role of the environment as a determinant of behavior.