Bissoy.com
Doctors Medicines MCQs Q&A

According to Classical economic analysis, in the long run an increase in the money supply results in

According to Classical economic analysis, in the long run an increase in the money supply results in Correct Answer a proportional increase in the price level.

(E) The Classical notion of monetary neutrality is based on the idea that the money supply and the price level are proportionally related.

Related Questions

Indicate the correct answer from the following types of the long run average cost curves on which the minimum average cost of production in long run can be determined.
1. Long run average cost curve under normal production function
2. Long run average cost curve under linearly homogeneous production function
3. Planning curve
4. Envelope curve
Which of the following statements is most relevant in the context of Job Analysis? Choose the correct answer from the code given below. (i) Job Analysis helps in identifying the right person for the right job. (ii) A person cannot judge the job from the point of view of its suitability. (iii) Job analysis helps in job satisfaction and job efficiency. (iv) Through Job Analysis an employer cannot evaluate the prospective employee to judge his fitness or otherwise for the job. (v) Job Analysis helps in planning appropriate training programs. (vi) Job Analysis defines client needs in specific terms. (vii) Job Analysis assists in knowing the personnel specifications for various jobs.
The given statements state the differences between economic development and economic growth. Which of the following statement is correct?  I. Economic growth is single-dimensional whereas economic development is multi-dimensional. II. Economic growth is measurable, but economic development cannot be precisely measured. 
Mc-Gehee and Thayer recommend which of the following three tier approach to determine the training needs?
1. Organisational Analysis
2. Operational/Task Analysis
3. Man Power Analysis
4. Assets Value Analysis
5. Inventory Analysis
6. Skill Analysis
Which one of the following sets is incorrect to show the inter-relationships among price elasticity coefficient, change in price and change in total revenue ? Price elasticity coefficient Change in price Change in Total Revenue 1) Zero Increase Decrease Increase Decrease (2) Less than 1 Increase Decrease Decrease Increase (3) Equal to 1 Increase Decrease No change No change (4) More than 1 Increase Decrease Decrease Increase  
In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives. ________________ various signs of economic slowdown such as languishing industrial production and adverse __________________of the drought on rural livelihoods and demand, the government is apparently unable ____________________ unwilling to increase public spending to _________________ peoples material distress or to kick-start economic ____________________ to increase employment.
distress or to kick-start economic ____________________ to increase employment.
With reference to the 'Neo Classical Approach to Economic Development', which of the following statements are correct? I. It considers economic development to be the remover of poverty and inequality. II. It assumes that growth results from the long-term effects of capital formation.
An increase of 1% per annum in the rate of growth of the money supply will increase inflation in the long run by _______.
Given below are six sentences of a  passage. The first and sixth sentences are given in the beginning as S1 and S6. The middle four-sentence in each have been jumbled up and labelled as P, Q, R and S. You are required to find the proper sequence of the four sentences. S1: In a globalised world, no country can hope to impose tariffs without affecting its own economic interests. S6: The ongoing trade war also threatens the rules-based global trade order which has manages to amicably handle trade disputes between countries for decades. P: So both the U.S. and China, which have blamed each other for the ongoing trade war, are doing no good to their own economic fortunes by engaging in tit-for-tat tariff battle. Q: Apart from disadvantaging its consumers, who will have to pay higher prices for certain goods, tariffs will also disrupt the supply chain of producers who rely on foreign imports. R: China, which is fighting an economic showdown, will be equally affected. S: The minutes of the U.S. Federal Reserve June policy meeting show that economic uncertainty due to the trade war is already affecting private investment in the U.S., with many investors deciding to scale back or delay their investment plans.
Each item consists of six sentences of a passage. The first and sixth sentences are given in the beginning as S1 and S6. The middle four sentences in each have been jumbled up and labelled as P, Q, R and S. You are required to find the proper sequence of the four sentences and markyour response accordingly on the Answer Sheet.
S1 :In a globalized world, no country can hope to impose tariffs without affecting its own economic interests.
S6 :The ongoing trade war also threatens the rules-based global trade order which has managed to amicably handle trade disputes between countries for decades.
P :So both the U.S. and China, which have blamed each other for the ongoing trade war, are doing no good to their own economic fortunes by engaging in this tit-for-tat tariff battle.
Q : Apart from disadvantaging its consumers, who will have to pay higher prices for certain goods, tariffs will also disrupt the supply chain of producers who rely on foreign imports.
R : China, which is fighting an economic slowdown, will be equally affected.
S :The minutes of the U.S. Federal Reserve June policy meeting show that economic uncertainty due to the trade war is already affecting private investment in the U.S., with many investors deciding to scale back or delay their investment plans
The correct sequence should be