Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

According to monetarist theory, what are the short-run and long-run effects of an unexpected rise in the money supply on the real wage level?

  • Ashort-run decrease, long-run increase
  • Bshort-run decrease, long-run unchanged
  • Cshort-run unchanged, long-run increase
  • Dshort-run unchanged, long-run unchanged

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI