Economy is in long run equilibrium at full employment

Assignment Help Business Economics

Reference no: EM131174229

Assuming that the economy is in the long run equilibrium at full employment, an increase in the money supply will cause a:

A) proportional increase in the price level and an increase in real GDP.

B) proportional increase in the price level and a reduction in real GDP.

C) proportional reduction in the price level and an increase in real GDP.

D) proportional increase in the price level and no change in real GDP.

Reference no: EM131174229

Questions Cloud

Perspective of a manger and identify decisions : Analyze Ford Motor Company from the perspective of a manger and identify decisions you would be faced with on a daily basis that pertain to managerial economics.

In monopolistically competitive? markets-economic losses : In monopolistically competitive? markets, economic losses

How you manage your life : explain not how you manage your life, but how you manage in terms the principles of design.- Describe how the principles of design work similarly to the way we accomplish order in our daily lives.

Calculate the required diameter of a parachute : Calculate the required diameter of a parachute in the form of a hemispherical cup supporting a man weighing 800 N if the terminal velocity (see Section 2.6.4, Chapter 2) in air at 40°C is to be 5 m/s.

Economy is in long run equilibrium at full employment : Assuming that the economy is in the long run equilibrium at full employment, an increase in the money supply will cause a:

Blood pressure medication : If the demand curve for Pfizer's Norvasc, a blood pressure medication, is more elastic in Mexico than it is in the United States, how could Pfizer use this information to maximize their profits?

Describe which is more risky bonds or common stocks : Explain the relationship between risk and return Identify an example of risk and return. Explain which is more risky bonds or common stocks. Explain how understanding risk and return will help you in future business ventures.

Reply the given discussion post : Do you believe that the collective actions of individuals acting "socially responsible" can make a greater impact than a corporation?

The recession experienced by economy will cause short run : If left alone, the recession experienced by an economy will cause the short-run:

User Account

All Pages