In 194552, the records show that falling price levels stimulated increases in real Gross National Product (GNP).
Indicate whether the statement is true or false
Question 2
New Keynesian theory says that
a. changes in the money supply can have long run and short run effects on real variables.
b. changes in the money supply can have short run effects on real variables, but not long run effects.
c. changes in the money supply can have long run effects on real variables, but not short run effects.
d. changes in the money supply have no effect on real variables in the short run or the long run.
