Real and nominal variables are highly intertwined,and changes in the money supply change real GDP.Most economists would agree that this statement accurately describes
A)both the short run and the long run.
B)the short run,but not the long run.
C)the long run,but not the short run.
D)neither the long run nor the short run.

Question

Quizplus · Accepted Answer

In the short run, changes in the money supply can affect real GDP due to price and wage stickiness, but in the long run, real GDP is determined by real factors like technology and resources, not by the money supply.

Real and Nominal Variables Are Highly Intertwined,and Changes in the Money