Contractionary monetary policy causes:
a. Aggregate demand to rise, prices to rise, and real GDP to fall.
b. Aggregate demand to rise, prices to rise, and real GDP to rise.
c. Aggregate demand to fall, prices to fall, and real GDP to fall.
d. Aggregate supply to rise, prices to rise, and real GDP to rise.
e. Aggregate supply to rise, prices to rise, and real GDP to fall.
.C
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In the above figure, what is the minimum supply price for the fourth gallon of ice cream?
A) $2.00 B) $3.00 C) $4.00 D) $5.00
Is a monopolistically competitive firm allocatively efficient?
A) No, because it does not produce at minimum average total cost. B) Yes, because price equals average total cost. C) No, because price is greater than marginal cost. D) Yes, because it produces where marginal cost equals marginal revenue.