In the Basic Model That Includes the AD and LRAS

question 143

Multiple Choice

In the basic model that includes the AD and LRAS curves only, aggregate demand shocks caused by changes in the growth of money supply:

• A) are neutral in the short run only.
• B) are neutral in the long run only.
• C) are neutral in both the short run and long run.
• D) are neutral in neither the short run nor the long run.

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