In the AD-AS Model with a Long-Run Potential Growth Rate

question 180

Multiple Choice

In the AD-AS model with a long-run potential growth rate of 2%,a 6 percentage point increase in the money supply growth rate will cause the economy's growth rate to be _____ in the long run.

• A) 2%
• B) 4%
• C) 6%
• D) 8%

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Definitions:

Inductive Organization

A method of structuring information that starts with specific instances or evidence and builds toward a general conclusion.

Subjective Nature

The characteristic of being based on or influenced by personal feelings, tastes, or opinions rather than external facts.

Functional Report

A document that focuses on the outcomes and results of specific functions or departments within an organization.

External Report

A document prepared to provide analysis, findings, or recommendations to parties outside of the organization, often for clients or public dissemination.