According to the Misperceptions Theory,after an Unanticipated Increase in the Money

question 95

Multiple Choice

According to the misperceptions theory,after an unanticipated increase in the money supply has occurred,the SRAS curve must shift ________ to restore general equilibrium; as it does so,the price level ________.

• A)downward; rises
• B)downward; falls
• C)upward; rises
• D)upward; falls

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