In the Basic AD and Solow Growth Curve Model, Aggregate

question 129

Multiple Choice

In the basic AD and Solow growth curve model, aggregate demand shocks caused by changes in the growth of money supply I. are neutral in the short run. II. are neutral in the long run. III. raise real GDP growth rates in the short run.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

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