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Social Science Clinic => Economics => Macroeconomics => Topic started by: roselinechinyere27m on Jan 2, 2020

Title: In the money surprise model, an increase in the money supply causes
Post by: roselinechinyere27m on Jan 2, 2020

In the money surprise model, an increase in the money supply causes
◦ the real interest rate and real wage to fall, output and employment increase.
◦ no effects on the real aggregate variables, but an increase in the price level.
◦ a persistent increase in inflation.
◦ the real interest rate and the real wage rate to increase, output and employment to fall.
◦ the real interest rate and employment to fall, the real wage and output increase.

Title: In the money surprise model, an increase in the money supply causes
Post by: jgranad15 on Jan 2, 2020

the real interest rate and real wage to fall, output and employment increase.