Assuming that the economy is in the long run equilibrium at


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.

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Business Economics: Assuming that the economy is in the long run equilibrium at
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