In the Extended Classical Model,an Anticipated Increase in the Money

question 48

Multiple Choice

In the extended classical model,an anticipated increase in the money supply would cause output to ________ and the price level to ________ in the short run.

• A)increase;increase
• B)increase;not change
• C)not change;increase
• D)decrease;increase

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Definitions:

Households

Units of individuals living together, making decisions regarding consumption, savings, and investments, playing a key role in the economic system.

Total Income

The sum of all earnings received by an individual or entity, including wages, salaries, and investment returns.

Fourth Quintile

The fourth quintile refers to the subgroup that falls into the 60-80% range of a distribution when data is divided into five equal groups, often used in economic and social statistics to analyze income or wealth distribution.

Total Income

The total amount of money received by an individual or generated by an entity within a specific period, including wages, salaries, benefits, and other earnings.