The Fed initiates a contractionary monetary policy that is correctly anticipated by economic agents in the economy. The result is
A) decreased prices, but no change in real GDP.
B) decreased prices and decreased real GDP in the short run, but only decreased prices in the long run.
C) decreased real GDP in the short run and decreased prices in the long run.
D) decreased real GDP and prices in both the short run and the long run.
A
Economics
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Economic theory assumes that the goal of firms is to maximize
a. sales b. total revenue c. profit d. price e. utility
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Structural budget deficit is the hypothetical deficit we would have under current fiscal policies if the economy were operating near full employment.
Answer the following statement true (T) or false (F)
Economics