# According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ? Correct Answer: D. prices to rise and output to remain unchanged. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

---

Tested in Competitive Exams:

- [NTS Test Prep](https://test-prep.blog/exams/nts)
- [FPSC Past Papers](https://test-prep.blog/exams/fpsc)
- [PPSC Solved MCQs](https://test-prep.blog/exams/ppsc)
- [PMDC MDCAT 2026](https://test-prep.blog/exams/mdcat)
- [UET ECAT Prep](https://test-prep.blog/exams/ecat)
- [CSS Central Superior](https://test-prep.blog/exams/css)

- [Economics Mcqs](https://test-prep.blog/categories/economics-mcqs)
Difficulty: Easy 87% Accuracy

# According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?

Direct Answer & Quick Reference

The correct option is **D. prices to rise and output to remain unchanged**.

A. Prices to rise and output to rise

B. Price to fall and output to remain unchanged

C. Prices to fall and output to fall

D. prices to rise and output to remain unchanged **(Correct Answer)**

✨ Explain with AI

Verified Key: D. prices to rise and output to remain unchanged
Solved by 3,357+ students

Verified against official examination board answer keys and standard curriculum textbooks.

- [Previous Question The World Bank classifies countries into four groups. This classification is based upon:](https://test-prep.blog/mcq/the-world-bank-classifies-countries-into-four-groups-this-classification-is-base-8bb589e9-b9c0-41d7-b271-8c23bba7451c)
- [Next Question Automatic stabilizers are one of the _____ policy tools.](https://test-prep.blog/mcq/automatic-stabilizers-are-one-of-the-policy-tools-1586d9a0-f8b5-4c77-b48d-db492aec26a1)

- [Practice More Economics Mcqs MCQs](https://test-prep.blog/quiz/smart?category=economics-mcqs)
- [How We Verify Questions →](https://test-prep.blog/editorial-policy)

## Subject Overview

Explore thousands of solved past paper MCQs for Economics Mcqs categorized with explanations.

- [Browse All Economics Mcqs MCQs →](https://test-prep.blog/categories/economics-mcqs)

## Related Questions

- [The World Bank classifies countries into four groups. This classification is based upon:](https://test-prep.blog/mcq/the-world-bank-classifies-countries-into-four-groups-this-classification-is-base-8bb589e9-b9c0-41d7-b271-8c23bba7451c)
- [Automatic stabilizers are one of the _____ policy tools.](https://test-prep.blog/mcq/automatic-stabilizers-are-one-of-the-policy-tools-1586d9a0-f8b5-4c77-b48d-db492aec26a1)
- [Increase in supply of money will positively affect:](https://test-prep.blog/mcq/increase-in-supply-of-money-will-positively-affect-a3edbc22-9144-4668-b4c3-4932e7b4dc55)
- [The relationship between inflation and unemployment is represented by:](https://test-prep.blog/mcq/the-relationship-between-inflation-and-unemployment-is-represented-by-c31075ef-a94e-4bb2-b6b6-ee62d4b45dc4)
- [Which of the following is not a component of GDP?](https://test-prep.blog/mcq/which-of-the-following-is-not-a-component-of-gdp-cffa15fa-914c-4546-b0a2-439f891ad6e0)

---
*Source: https://test-prep.blog/mcq/according-to-the-model-of-aggregate-supply-and-aggregate-demand-in-the-long-run--c6156882-fc09-49fe-adbb-0d32b094ff27*
*Format: Markdown for Agents (Content Negotiation: text/markdown)*