-In the Above Figure, Suppose the Economy Starts at Point

question 89

Multiple Choice

-In the above figure, suppose the economy starts at point A. The short- run response to an increase in the growth rate of the quantity of money in the monetarist business cycle theory is for the price level to ________ and real GDP to ________.

• A)rise to 130; remain at $13 billion
• B)remain at 110; remain at $13 billion
• C)fall to 90; remain at $13 billion
• D)rise to 120; increase to $15 billion

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Definitions:

Debit

An entry recorded on the left side of an account in bookkeeping, indicating an increase in assets or expenses or a decrease in liabilities, equity, or income.

T Account

A T Account is a visual representation used in accounting to depict the debit and credit transactions affecting a particular account.

Credit Side

The credit side of an account in double-entry bookkeeping is where decreases in assets or expenses or increases in liabilities, equity, and income are recorded.

Debit Side

The left side of an account or transaction, used to record increases in assets, expenses, and dividend accounts, and decreases in liability, equity, and revenue accounts.