In the Long- Run, an Increase in the Money Supply

question 53

Multiple Choice

In the long- run, an increase in the money supply will cause output:

• A) to remain the same.
• B) to increase.
• C) to fluctuate up and down.
• D) to decrease.

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Definitions:

Political Instability

A situation where a government, due to various factors such as conflict, corruption, or ineffective governance, faces challenges in maintaining control or authority.

Frictional Unemployment

A form of unemployment that occurs when people are in between jobs or are entering the workforce for the first time, often due to voluntary decisions.

Brain Drain

The emigration of highly skilled or educated individuals from a particular country or region to another, often for better opportunities.

Remittances

Money sent back home by migrants to their family or others in their country of origin, contributing significantly to the economy of the receiving country.