Suppose That the Money Supply Increases

question 20

Multiple Choice

Suppose that the money supply increases. In the short run, this increases prices according to

• A)both the short-run Phillips curve and the aggregate demand and aggregate supply model.
• B)neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
• C)the short-run Phillips curve, but not the aggregate demand and aggregate supply model.
• D)the aggregate demand and aggregate supply model but not the short-run Phillips curve.

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Definitions:

Approach-Avoidance

Refers to the internal psychological conflict that arises when a single goal is both attractive and unattractive simultaneously.

Ten-Year-Old

A term used to describe someone or something that is exactly ten years of age.

Biogenic Needs

basic, essential human requirements for survival, such as food, water, air, and shelter.

Psychogenic Needs

Fundamental psychological or emotional needs influencing behaviors and attitudes.