The Price Level in the Long-Run Model

question 43

Multiple Choice

The price level in the long-run model

• A) is positively related to the level of real GDP.
• B) is positively related to the interest rate.
• C) is positively related to the sensitivity of money demand to income.
• D) is negatively related to the sensitivity of money demand to the interest rate.
• E) none of the above.

---

Definitions:

Confederacy

Commonly refers to the Confederate States of America, a coalition of 11 southern states that seceded from the United States from 1860-1865 during the American Civil War.

Georgia 1861

marks a period when Georgia, a Southern state, declared secession from the United States and joined the Confederate States of America during the Civil War.

Confederate South

The southern states of the United States that seceded from the Union in 1860-61, forming the Confederate States of America, leading to the American Civil War.

Punishable by Death

Certain crimes or legal offenses deemed so severe that they carry the death penalty as a potential form of punishment.