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

question 32

Multiple Choice

Suppose that from an initial AD/SAS/LAS intersection,the money supply grows by six percent.At the same time,the nominal wage rises by ten 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 higher
• D)above,that is unchanged
• E)above,between 6 and 10 percent higher

---

Definitions:

Antianxiety Drugs

Medications used to treat and reduce symptoms of anxiety.

Central Nervous System

A network of nerve tissues responsible for regulating body functions, which includes both the brain and the spinal cord.

Neurotransmitters

Chemical substances in the nervous system that transmit signals across a synapse from one neuron to another, involved in virtually every aspect of brain function.

Responsiveness

The quality of reacting quickly and positively to stimuli or requests.