FIGURE 27-5 -Refer to Figure 27-5.This Economy Begins in Equilibrium with

question 74

Multiple Choice

FIGURE 27-5
-Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.In the long run,after all adjustments have taken place,the money supply is ________,the interest rate is ________,the price level is ________,and real GDP is ________.

• A)$500 billion; 2%; 100; $800 billion
• B)$540 billion; 2%; 102; $805 billion
• C)$500 billion; 4%; 104; $800 billion
• D)$540 billion; 4%; 102; $795 billion
• E)$540 billion; 4%; 104; $800 billion

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Definitions:

Adults

Individuals who have reached the age where they are considered legally responsible for their actions and capable of living independently.

First- To Fifth-Graders

Children attending the first through fifth grades of elementary school, typically ranging in age from approximately six to eleven years old.

Sleep Per Night

The total duration of sleep an individual achieves within a 24-hour period, critical for health and wellbeing.

Hours

Units of time equal to 60 minutes, used to measure the duration of events, work, or other activities.