In the Monetarist Version of the AD-AS Framework,starting from Long-Run

question 40

Multiple Choice

In the monetarist version of the AD-AS framework,starting from long-run equilibrium,an increase in the money supply produces

• A) no change in Real GDP in the short run or the long run.
• B) a rise in Real GDP in both the short run and the long run.
• C) a rise in Real GDP in the short run,but not in the long run.
• D) a rise in Real GDP in the long run,but not in the short run.

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Definitions:

Associating Two Stimuli

The process of forming a connection or association between two different stimuli, a foundational concept in classical conditioning.

Sensitization

An increase in behavioral response after exposure to a stimulus.

Habituation

The diminishing response to a frequently repeated stimulus over time.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others, also known as modeling.