In the Friedman-Lucas Money Surprise Model

question 8

Multiple Choice

In the Friedman-Lucas money surprise model

• A) productivity growth causes real GDP to fluctuate.
• B) a Phillips curve relationship does not arise.
• C) workers are perfectly informed.
• D) an increase in money growth increases aggregate output because workers interpret an increase in nominal wages as an increase in real wages.

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Definitions:

Seceded

The act of formally withdrawing from an organization, alliance, or nation to become independent or join another entity.

Abolitionist Movement

A movement before and during the American Civil War which sought to end the practice of slavery in the United States.

Temperance Advocate

An individual who supports or promotes the temperance movement, which seeks to reduce or eliminate the consumption of alcohol.