According to the Aggregate Demand and Aggregate Supply Model, in the Long

question 12

Multiple Choice

According to the aggregate demand and aggregate supply model, in the long run what is the impact of an increase in the money supply?

• A)It leads to increased price level and real GDP.
• B)It leads to increased GDP, but there is no change in the price level.
• C)It leads to increased price level, but there is no change in real GDP.
• D)It does not cause a change in either the price level or real GDP.

---

Definitions:

Loan Guarantees

Agreements in which a guarantor, usually a government or financial institution, agrees to pay back a loan if the borrower defaults.

Business Incubators

Organizations designed to accelerate the growth and success of startup and early-stage companies by providing resources such as space, capital, coaching, and networking connections.

Loans

A sum of money that is borrowed and is expected to be paid back with interest.

Franchising

Contractual business arrangement between a manufacturer or other supplier, and a dealer such as a restaurant operator or retailer.