Imagine Two Economies That Are Identical Except That for a Long

question 170

Multiple Choice

Imagine two economies that are identical except that for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $500 billion. It follows that

• A)real GDP and the price level are lower in country B.
• B)real GDP, but not the price level, is lower in country B.
• C)the price level, but not real GDP is lower in country B.
• D)neither the price level or real GDP is lower in country B.

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Definitions:

Lay Eggs

The act of depositing eggs by a female organism, as a means of reproduction.

Feathers

Keratinous structures unique to birds, used for flight, insulation, and display purposes.

Shrews

Small insectivorous mammals with long snouts, belonging to the family Soricidae.

Lepidosaur Lineage

A lineage of reptiles that includes squamates (lizards, snakes) and rhynchocephalians (tuataras), characterized by their scaled skin.