The Extent to Which a Given Increase in Nominal Income

question 155

Multiple Choice

The extent to which a given increase in nominal income is the result of a price level change or a change in real income is primarily determined by

• A)the quantity theory of money
• B)the equation of exchange
• C)the slope of the aggregate demand curve
• D)the slope of the short-run aggregate supply curve
• E)none of the above

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