In the Dynamic AD-AS Model, an Increase in Money Growth

question 68

Multiple Choice

In the dynamic AD-AS model, an increase in money growth will cause the growth rate of real GDP to increase in

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

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Definitions:

REM Deprivation

The condition of being deprived of Rapid Eye Movement sleep, a stage of sleep associated with dreaming, which can lead to various psychological and physiological effects.

REM Sleep

A phase of sleep characterized by rapid eye movements and is associated with dreaming.

Incorporate

To take in or include something as part or element of a larger thing.

Spray Water

The act of dispersing water in fine droplets over a surface or area, typically using a device designed for this purpose.