Holding All Else Constant,in the Short Run,a Decrease in the Money

question 145

Multiple Choice

Holding all else constant,in the short run,a decrease in the money supply can cause a(n)

• A) decrease in unemployment.
• B) high rate of inflation.
• C) increase in the price level.
• D) decrease in real gross domestic product (GDP).
• E) increase in real gross domestic product (GDP).

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Definitions:

Transductive Reasoning

A type of thinking typical in early childhood where children make inferences from specific instances to other specific instances.

Intuitive

Relating to the ability to understand or know something without conscious reasoning; instinctive.

Centrated

Focusing attention on one aspect of a situation or object while ignoring others, a concept found in Piaget's theory of cognitive development.

Irreversible

A process or event that cannot be undone or reversed once it has occurred.