Suppose That from an Initial AD/SAS/LAS Intersection,the Money Supply Grows

question 33

Multiple Choice

Suppose that from an initial AD/SAS/LAS intersection,the money supply grows by ten percent.At the same time,the nominal wage rises by six percent.As a result,output will be ________ the natural GDP,with a price level ________.

• A)below,10 percent lower
• B)below,10 percent higher
• C)below,between 6 and 10 percent lower
• D)above,that is unchanged
• E)above,between 6 and 10 percent higher

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