contestada

The model of short-run economic fluctuations focuses on _____

(A) the price level and real GDP.
(B) Dproductivity and economic growth.
(C) the neutrality of money and inflation.
(D) None of the above is correct.

Respuesta :

Answer:

The correct answer is letter "A": the price level and real GDP.

Explanation:

The model of short-run economic fluctuations is a method that measures the changes in the output level of an economy. According to this model, the increase in money supply increases production which causes prices to decrease. It considers two variables: the average level of prices and the production of the economy based on the real Gross Domestic Product (GDP).