In Which of the Following Economic Theories Is It Possible

question 134

Multiple Choice

In which of the following economic theories is it possible for an increase in the money supply to lead to a decrease in Real GDP in the short run?

• A) Keynesian theory
• B) Monetarist theory
• C) New classical theory
• D) a and b
• E) a and c

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Definitions:

Dominant

Referring to that which is most powerful, influential, or prevalent in a particular context or society.

Institutionally

Relating to, organized as, or characteristic of an institution or institutions.

Globalization

The increasing interconnectivity and interdependence of cultures, economies, and technologies across the globe, leading to greater cultural exchange and economic integration.

Culturally

Pertains to the customs, beliefs, arts, institutions, and all other products of human work and thought considered as a unit or characteristic of a particular community or population.