Independent and Strong
New member
Assume the following hypothetical example. The money supply doubles, followed by a doubling of the wage rate and the price level. Under these circumstances, we can safely conclude which of the following?
A Real aggregate output will double.
B Real aggregate output will fall in half.
C Nominal output will double but real output will fall.
D Nominal output will double but real output will remain unchanged.
A Real aggregate output will double.
B Real aggregate output will fall in half.
C Nominal output will double but real output will fall.
D Nominal output will double but real output will remain unchanged.