Which of the Following Is True About the Classical Theory

question 107

Multiple Choice

Which of the following is true about the classical theory and the monetarist theory with
Regards 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:

Graafian Follicle

A mature ovarian follicle that is ready to release an egg during ovulation.

Blood Sugar Concentration

The amount of glucose present in the blood, an important energy source for the body's cells.

Testes

Male reproductive organs that produce sperm and hormones, including testosterone.

Spermatozoa

Male gametes or reproductive cells that carry a man's DNA to the female ovum in sexual reproduction.