60) If real GDP grows at 4 percent, the quantity of money grows at 6 percent, an
ID: 1116231 • Letter: 6
Question
60) If real GDP grows at 4 percent, the quantity of money grows at 6 percent, and velocity does not change, then in the long run the inflation rate is A) 4 percent. B) 6 percent C) 10 percent. D) 2 percent. E) 1.5 percent. 61) The slope of the aggregate supply curve shows that, all else the same, the A) quantity of real GDP supplied increases as the price level increases. B) quantity of real GDP supplied decreases as the price level increases. C) quantity of real GDP supplied remains constant as the price level increases D) price level remains constant as real GDP increases. E price level remains constant as potential GDP increases. 62) Moving along the AS curve, when the price level increases, the A) peal wage rate falls, and there is an increase in the quantity of real GDP supplied B) real wage rate rises, and there is an increase in the quantity of real GDP supplied. O nominal wage rate falls, and there is an increase in the quantity of real GDP supplied. D) nominal wage rate rises, and there is a decrease in the quantity of real GDP supplied. E real wage rate rises, and there is a decrease in the quantity of real GDP supplied. 63) If there is a rise in the price level, there is movementalong the AS curve. A) a decrease; downward B) an increase; upward C) an increase; downward D) a decrease, upward F) no change; upward in the quantity of real GDP supplied and a 64) It is profitable to hire more labor if the price level and the money wage rate A) rises; falls B) falls; rises C) falls; does not change D) does not change; rises E) rises; rises by the same percentage Which of the following changes aggregate supply and shifts the aggregate supply curve i. change in the price level ii. change in potential GDP ii. change in the money wage rate A) i only B) ii only C) ii only D) i and ii E) i, ii, and ii 12Explanation / Answer
Velocity = constant
GDP = 4%
Quantity of money = 6
then long run inflation rate would be 6% - 4% = 2%
Hence, option D is correct
note: only 1st question is answered as per chegg policy
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.