Suppose That the Economy Is in Long-Run Equilibrium at Full

question 80

Multiple Choice

Suppose that the economy is in long-run equilibrium at full employment levels of real GDP. In the long run, if the money supply increases, we would expect _____ in the price level and _____ in real GDP.

• A) an increase; no change
• B) an increase; an increase
• C) a decrease; no change
• D) no change; an increase

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Definitions:

Salespeople

Individuals who sell goods and services to customers, aiming to meet customer needs and achieve sales targets.

Conviction

The firm belief in the truth of one’s products or services, often seen as necessary for successful sales efforts.

Prospect

A potential customer or client who has been identified as fitting a target market or demographic but has not yet made a purchase.

Mental Steps

The cognitive processes or stages one goes through when solving a problem or making a decision.