AP MACROECONOMICS 25 POINTS

Which of the following statements relating to money is correct?

In the short run, increases in the money supply should decrease real GDP and employment.

In the long run, increases in the money supply should not change the full-employment real GDP.

In both the short run and the long run, increases in the money supply should decrease the price level.

An increase in the money supply will increase the price level in the short run, but not change the price level in the long run.

Changes in the money supply cannot change real GDP in either the short run or the long run.

Question

18-08-2022
Advanced Placement (AP)

contestada

AP MACROECONOMICS 25 POINTS

Which of the following statements relating to money is correct?

In the short run, increases in the money supply should decrease real GDP and employment.

In the long run, increases in the money supply should not change the full-employment real GDP.

In both the short run and the long run, increases in the money supply should decrease the price level.

An increase in the money supply will increase the price level in the short run, but not change the price level in the long run.

Changes in the money supply cannot change real GDP in either the short run or the long run.

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Lanuel Lanuel · Answer 1 · 2022-08-19T16:21:57+02:00

A statement relating to money that is correct is: A. in the short run, increases in the money supply should decrease real GDP and employment.

What is money?

Money can be defined as any formally recognized economic unit that's universally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

In Financial accounting, the price paid by an individual or business entity for the use of money is generally referred to as interest.

In this context, we can infer and logically deduce that a statement relating to money which is correct is that in the short run, increases in the money supply should decrease real GDP and employment.

Read more on money here: brainly.com/question/11252085

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