According to the aggregate demand and aggregate supply model, in the long run a decrease in the money supply leads to
a. decreases in both the price level and real GDP.
b. an increase in real GDP and an increase in the price level.
c. a decrease in the price level but does not change real GDP.
d. an increase in the price level but does not change real GDP.
c
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Urban Outfitters wants to raise $25 million to finance the construction of a new store, and the company wishes to raise the funds through direct finance. Which of the following methods could it use?
A) It could issue $25 million in stock. B) It could borrow $25 million from a bank. C) It could sell $25 million in bonds. D) It could choose either A or C.
Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up
a. True b. False Indicate whether the statement is true or false