Question

The costs of changing prices are called:

	printing costs.
	short-run costs.
	menu costs.
	long-run costs.

Menu costs are the costs associated with changing:

	wages.
	waiters.
	prices.
	jobs.

According to the quantity theory of money, an increase in money supply causes an increase in:

	prices.
	velocity of money.
	real GDP.
	production.

In the basic model that includes the AD and LRAS curves only, aggregate demand shocks caused by changes in the growth of money supply:

	are neutral in neither the short run nor the long run.
	are neutral in both the short run and long run.
	are neutral in the long run only.
	are neutral in the short run only.

Answer 1