According to the Aggregate Demand and Aggregate Supply Model, in the Long

question 21

Multiple Choice

According to the aggregate demand and aggregate supply model, in the long run an increase in the money supply leads to

• A)increases in both the price level and real GDP.
• B)an increase in real GDP but does not change the price level.
• C)an increase in the price level but does not change real GDP.
• D)no change in either the price level or real GDP.

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Definitions:

Financial Control

The process of managing a company's financial resources and operations to ensure efficiency, compliance, and profitability.

Franchise

When one business owner sells to another the right to operate the same business in another location, using its name and operating methods.

Business Owner

A business owner is an individual who owns and oversees the operation of a company, making key decisions and assuming the risks associated with the business.

Original Owner

The individual or entity that first held ownership or possession of an asset, property, or business before any transfers or sales.