If the Money Supply Increases by 10%, in the Long

question 68

Multiple Choice

If the money supply increases by 10%, in the long run:

• A) unemployment drops by 10%.
• B) the price level increases by 10%.
• C) real GDP increases by 10%.
• D) unemployment drops by 20%.

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Definitions:

Alimony

Monetary payments by one ex-spouse to the other after a divorce (sometimes called spousal maintenance).

Psychic

A person who claims to use extrasensory perception (ESP) to identify information hidden from the normal senses, or someone deeply sensitive to spiritual forces.

Establish Separate

To create or set up something (such as a unit, institution, or residence) to function independently or in a newly segregated manner.

Living Together

A situation where two or more people, often in a romantic relationship, share a common residence without being legally married.