Re: Dse 2010 Q44

Posted by Aish on Jun 18, 2014; 2:24pm
URL: http://discussion-forum.276.s1.nabble.com/Dse-2010-Q44-tp7592978p7593025.html

Que. 21.(2010) Consider a closed economy.If the nominal wage is flexible and nominal money supply is increased, then which of the following will be in equlibrium?.
A. Real wage decreases and real money supply decreases.
B.Real wage decreases and real money supply increases.
C.Real wage is unchanged and real money supply is unchanged.
D.Real wage decreases and real money supply is unchanged.

Please some one explain this question.Answer is D.