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

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