Starting from a Position of Macroeconomic Equilibrium at the Full-Employment

question 170

Multiple Choice

Starting from a position of macroeconomic equilibrium at the full-employment level of real GDP, in the short run an unanticipated increase in the money supply will

• A) raise real interest rates, lower prices, and reduce real GDP.
• B) raise real interest rates, lower prices, and leave real GDP unchanged.
• C) raise nominal interest rates, lower prices, and leave real GDP unchanged.
• D) lower real interest rates, raise prices, and increase real GDP.

---

Definitions:

Firm Idea

A well-defined, strongly held belief or concept that is not easily swayed by opposing arguments.

Body Mass Index

A measurement that compares a person's weight to their height to estimate body fat.

FTO Gene

A gene related to fat mass and obesity, influencing an individual's risk of becoming obese.

TV Viewing

The act of watching television content, often associated with leisure and entertainment.