According to the aggregate demand-aggregate supply model, what is the short-run impact of a reduction in the money supply by the Fed?
A) Current output will fall, but the price level will rise.
B) Current output will rise, but the price level will fall.
C) Current output and the price level will both rise.
D) Current output and the price level will both fall.
D
Economics
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________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries
A) Trade creation B) Trade diversion C) Trade exclusion D) Trade distortion
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The revenue collected by an income tax is a function of the average tax rate
a. True b. False
Economics