If a Central Bank Increases the Money Supply in Response

question 35

Multiple Choice

If a central bank increases the money supply in response to an adverse supply shock,then which of the following quantities moves closer to its pre-shock value as a result?

• A)both the price level and output
• B)the price level but not output
• C)output but not the price level
• D)neither output nor the price level

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Definitions:

Drug Allergy Checks

Drug allergy checks involve reviewing a patient's medical history and conducting tests to identify any adverse reactions they may have to specific medications before prescribing them.

Secondary Effects

The unintended consequences or side effects that follow the primary outcome of an action or treatment.

Blood Serum Concentration

The amount of a substance present in the serum component of blood, used as an indicator of health or disease state.

Therapeutic Drug Dose

This refers to the calculated amount of a medication prescribed for intake or administration to achieve a desired therapeutic effect.