Asked by
Sydney Milella
on Nov 11, 2024
Verified
In the aggregate demand-aggregate supply model in the short run,a decrease in the money supply is likely to cause a(n) :
A) increase in both the price level and real GDP.
B) decrease in both the price level and real GDP.
C) increase in real GDP and a decrease in the price level.
D) decrease in real GDP and an increase in the price level.
E) increase in the price level only.
Money Supply
The sum of all financial assets in an economy at a particular time, encompassing cash, deposits in banks, and other easily convertible assets.
Real GDP
Gross Domestic Product adjusted for inflation, measuring the value of all final goods and services produced within a country's borders in a given year, reflecting the real quantity of production.
- Perceive the near-term and long-term results of fluctuations in the money supply.
Verified Answer
MC
Learning Objectives
- Perceive the near-term and long-term results of fluctuations in the money supply.
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