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:

Kidney Stones

Hard deposits made of minerals and salts that form inside the kidneys, which can cause severe pain and discomfort when passing through the urinary tract.

Condition

A state of health, physical situation, or the stipulations affecting an agreement or circumstance.

Laryngectomy

Surgical removal of the larynx or voice box.

Larynx

The voice box located in the throat, responsible for producing sound.