If Long-Run Real GDP Growth Is Determined by Real Changes

question 86

Multiple Choice

If long-run real GDP growth is determined by real changes in the economy,the quantity theory of money implies that:

• A)changes in the money growth rate lead one-for-one to changes in the inflation rate in the long run.
• B)changes in the money growth rate lead one-for-one to changes in the inflation rate but only in the short run.
• C)changes in velocity lead one-for-one to changes in the inflation rate.
• D)changes in the money growth rate lead to a greater than one-for-one change in the inflation rate in the long run.
• E)none of the above

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Definitions:

Sexual Dimorphism

The distinction between two sexes of the same species by physical appearance, including differences in size, color, or body structure.

Genetic Sex

Determined by the chromosomes an individual inherits (XX for females and XY for males), affecting the development of sexual and reproductive anatomy.

Gonads

The primary reproductive organs in animals, namely testes in males and ovaries in females, responsible for producing gametes and hormones.

Secondary Sex Characteristics

Features that distinguish the two sexes of a species apart from the reproductive organs, developing during puberty, such as body hair and voice changes.