Which of the Following Is True About the Classical Theory

question 115

Multiple Choice

Which of the following is true about the classical theory and the monetarist theory with Jregards to the impact of changes in the money supply on the economy?

• A) Both the classical theory and monetarism conclude that changes in money supply affect real GDP in the short run and in the long run.
• B) Both the classical theory and monetarism conclude that changes in money supply do not affect real GDP in the short run but will affect real GDP in the long run.
• C) Both the classical theory and monetarism conclude that changes in money supply affect nominal GDP in the long run.
• D) Both the classical theory and monetarism conclude that changes in money supply affect nominal GDP in the short run and real GDP in the long run.

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Definitions:

Superficially Resemble

To appear similar or alike on the surface, but possibly different in more profound or structural aspects.

Deuterostomes

Organisms characterized by undergoing deuterostomy during embryonic development, where the anus forms before the mouth.

Blastopore

The opening formed during early embryonic development in animals, which can develop into the mouth or anus depending on the species.

Radial Cleavage

A pattern of animal embryonic development in which the divisions of the egg are symmetrical around the polar axis, typical of deuterostomes.