In the Long Run,increases or Decreases in the Money Supply

question 38

Multiple Choice

In the long run,increases or decreases in the money supply

• A) cause real potential output to rise and fall.
• B) must ultimately be approved by Congress.
• C) may increase or decrease aggregate supply but not aggregate demand.
• D) are tied to increases and decreases in the U.S. government holdings of gold.
• E) raise and lower the price level but have no effect on real GDP.

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Definitions:

Tax Exemptions

Financial exclusions that reduce taxable income, provided by law for certain income, people, or activities, leading to reduced tax liabilities.

Top-Heavy Pension Plan

Describes a retirement plan in which a disproportionate amount of benefits are allocated to the company's higher-earning employees.

Pension Benefits

Retirement plan contributions made by employers for their employees, providing income upon retirement.

Key Employees

Key Employees are individuals who have a significant impact on the business's operations, usually possessing critical skills, knowledge, or abilities that are hard to replace.