In the Short Run,contractionary Monetary Policy ________ Real Gross Domestic

question 37

Multiple Choice

In the short run,contractionary monetary policy ________ real gross domestic product (GDP) ,________ unemployment,and ________ the price level.

• A) raises; lowers; raises
• B) raises; raises; raises
• C) lowers; lowers; raises
• D) lowers; raises; lowers
• E) raises; lowers; lowers

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Definitions:

Quantity Demanded

refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

CDs

Certificates of Deposit, savings certificates with a fixed maturity date and specified fixed interest rate, offering a low-risk investment option.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.