Since Classical Economists and Monetarists Believe That the Economy Operates

question 107

Multiple Choice

Since classical economists and monetarists believe that the economy operates at full employment, real GDP, that is, along the vertical segment of aggregate supply:

• A) any increase in the money supply can only end up raising the price level.
• B) any increase in the money supply can only end up lowering the price level.
• C) any decrease in the money supply can only end up raising the price level.
• D) changes in the money supply will not affect the price level.
• E) any increase in the money supply will cause both nominal and real GDP to increase.

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Definitions:

Disoriented

A state of confusion regarding time, place, or identity, often resulting from psychological or physical causes.

Neurological Deficit

A lack or impairment in the normal function of the nervous system, which can affect movement, sensation, or cognitive abilities.

Consciousness Level

A measure of a person's awareness of themselves and their environment, including their ability to respond to stimuli.

Sensory Deprivation

The intentional reduction or removal of stimuli from one or more of the senses.