According to the Aggregate Demand and Aggregate Supply Model, in the Long

question 21

Multiple Choice

According to the aggregate demand and aggregate supply model, in the long run an increase in the money supply leads to

• A)increases in both the price level and real GDP.
• B)an increase in real GDP but does not change the price level.
• C)an increase in the price level but does not change real GDP.
• D)no change in either the price level or real GDP.

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Definitions:

Supply Assurance

The strategic approach and practices put in place by a company to ensure consistent and reliable delivery of essential goods and services, minimizing disruption in the supply chain.

Stringent Quality

Strict and precise standards and procedures to ensure high quality of products, services, or processes.

Small Quantity

A lesser amount or volume of goods or materials, often contrasting with bulk or large-scale purchases.

Core Competency

A defining strength or advantage of a company, crucial to its success and difficult for competitors to replicate.