If the AD curve shifts to the left as a result of a decrease in the money supply growth rate:
A. the economy will temporarily depart from its long-run inflation rate.
B. the economy will permanently depart from its long-run growth rate.
C. the economy will temporarily depart from its long-run growth rate.
D. the economy will adjust immediately and never depart from its long-run growth rate.
Answer: C. the economy will temporarily depart from its long-run growth rate.
Economics
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