In the Long Run, the Price Level Adjusts

question 116

Multiple Choice

In the long run, the price level adjusts

• A) so that the real interest rate equals the nominal interest rate.
• B) so that the inflation rate equals zero.
• C) to achieve money market equilibrium.
• D) so that the inflation rate equals the growth rate of real GDP.
• E) so that the inflation rate is moderate.

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