In the long run, according to the quantity theory of money, if the money supply doubles, what happens to the price level? What happens to real GDP? Identify the percentage change in both the price level and real GDP. The price level decreases. stays the same. increases. Percent change in the price level: % Real GDP stays the same. increases. decreases. Percent change in real GDP:

Survey of Economics (MindTap Course List)
9th Edition
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Irvin B. Tucker
Chapter14: Aggregate Demand And Supply
Section14.A: Cost-push And Demand-pull Inflation Revisited
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In the long run, according to the quantity theory of money, if the money supply doubles, what happens to the price level? What happens to real GDP? Identify the percentage change in both the price level and real GDP.

The price level
decreases.
stays the same.
increases.
Percent change in the price level:
 
%
Real GDP
stays the same.
increases.
decreases.
Percent change in real GDP:
 
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