Imagine Two Economies That Are Identical Except That for a Long

question 170

Multiple Choice

Imagine two economies that are identical except that for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $500 billion. It follows that

• A)real GDP and the price level are lower in country B.
• B)real GDP, but not the price level, is lower in country B.
• C)the price level, but not real GDP is lower in country B.
• D)neither the price level or real GDP is lower in country B.

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Definitions:

Embryo

Developing human from the first to the eighth week of development.

Fertilization

The process by which male and female gametes fuse to form a zygote, initiating the development of a new organism.

Endoderm

The innermost layer of cells or tissue of an embryo in early development that gives rise to the lining of the digestive and respiratory systems.

Circulatory System

The circulatory system is an organ system that permits blood and lymph circulation to transport nutrients, oxygen, carbon dioxide, hormones, and blood cells to and from cells in the body.