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:

Sales Discounts

A reduction offered by a seller on the list price of a product or service as an incentive for buyers, usually applied to promote sales, clear out inventory, or recognize volume purchases.

General Journal

A primary accounting record used to keep track of all business transactions not recorded in specialized journals, using the double-entry accounting method.

Periodic Inventory System

An inventory system that updates inventory balances at specific intervals instead of continuously, often requiring a physical count.

General Journal

A primary accounting record where financial transactions are chronologically recorded before being posted to specific accounts in the general ledger.