Starting from a position of macroeconomic equilibrium at the full-employment level of real GDP, in the short run, an unanticipated decrease in the money supply will:
a. raise real interest rates, lower the price level, and reduce real GDP
b. raise real interest rates, lower the price level, and leave real GDP unchanged.
c. raise nominal interest rates, lower the price level, and leave real GDP unchanged.
d. lower real interest rates, raise the price level, and increase real GDP.
a
Economics
You might also like to view...
Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the value of marginal product from hiring the fourth worker?
A) $2,400 B) $840 C) $120 D) $60
Economics
Which of the following equations represents the equation of exchange?
A) PM = VY B) MY = PV C) MV = PY D) M = VP/Y
Economics