Imagine Two Economies That Are Identical Except That for a Long

question 170

Multiple Choice

Imagine two economies that are identical except that for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $500 billion. It follows that

• A)real GDP and the price level are lower in country B.
• B)real GDP, but not the price level, is lower in country B.
• C)the price level, but not real GDP is lower in country B.
• D)neither the price level or real GDP is lower in country B.

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Definitions:

Dermis

The layer of dense connective tissue beneath the epidermis in the skin of vertebrates.

Digestive Tract

A continuous, hollow passage starting from the mouth to the anus through which food is ingested, digested, absorbed, and waste material expelled.

Blood Vessels

Blood vessels are tubular structures in the circulatory system that transport blood throughout the body, including arteries, veins, and capillaries.

Exocrine Glands

Glands that release their secretions through ducts to an external or internal surface, not directly into the bloodstream.