Most economists believe that in the short run
A) real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend.
B) real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend.
C) real and nominal variables are highly intertwined but that money cannot move real GDP away from its long-run trend.
D) real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.
Correct Answer:
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Q4: Most economists believe that the classical model
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A)does not
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