If the economy is at full employment and the Fed increases the quantity of money, ________. A.

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If the economy is at full employment and the Fed increases the quantity of money, ________.

A. aggregate demand increases, a recessionary gap appears, and the money wage rate starts to rise B. aggregate supply increases, the price level starts to fall, and an expansion begins C. aggregate demand increases, an inflationary gap appears, and the money wage rate starts to rise D. potential GDP and aggregate supply increase together and the price level does not change

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Essential Foundations Of Economics

ISBN: 9781786633255

8th Edition

Authors: Robin Bade, Michael Parkin

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