Assuming a Long-Run Aggregate Supply Curve, an Increase in the Money

question 83

Multiple Choice

Assuming a long-run aggregate supply curve, an increase in the money supply results in ________ in output and ________ in price level.

• A) a decrease; a decrease
• B) an increase; no change
• C) a decrease; no change
• D) no change; an increase

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Definitions:

Barriers to Entry

Barriers consisting of financial, bureaucratic, or legal hindrances that restrict the entry of new players into a market or business sector.

Monopoly Resources

Natural or created resources over which a single entity has control, limiting competition and influencing market prices.

Price Effect

The price effect is an economic term describing the impact of a change in a product’s price on its demand and supply.

Total Revenue

The total receipts a company receives from sales of goods or services before any expenses are subtracted.