When Real GDP Increases, the Demand for Money

question 379

Multiple Choice

When real GDP increases, the demand for money

• A) stays the same.
• B) we cannot make a prediction without additional information.
• C) decreases.
• D) increases.

Understand the concept of imperfect competition and its variants, including monopolistic competition and oligopoly.

Understand the concept of product-variety and business-stealing externalities in monopolistic competition.

Recognize the characteristics of long-run equilibrium in monopolistically competitive markets, including price, average total cost, and marginal cost relations.

Identify conditions of efficient scale operation and excess capacity in firms.

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