Assuming That the Economy Is in the Long Run Equilibrium

question 153

Multiple Choice

Assuming that the economy is in the long run equilibrium at full employment, changes in the money supply affect:

• A) the price level.
• B) employment.
• C) real GDP.
• D) all of the above

---

Definitions:

Retrieval Failure

Occurs when memories are not accessible from long-term storage, often due to a lack of cues or interference from other information.

Anterograde Amnesia

A condition affecting memory, where after the onset of the amnesia, the affected individual is unable to form new memories, though long-term memories from before the event remain intact.

Repression

A defense mechanism where unpleasant thoughts, memories, or feelings are excluded from conscious awareness.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.