In the Aggregate Demand-Aggregate Supply Model in the Short Run,a

question 53

Multiple Choice

In the aggregate demand-aggregate supply model in the short run,a decrease in the money supply is likely to cause a(n) :

• A)increase in both the price level and real GDP.
• B)decrease in both the price level and real GDP.
• C)increase in real GDP and a decrease in the price level.
• D)decrease in real GDP and an increase in the price level.
• E)increase in the price level only.

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Definitions:

Face Value

The nominal or dollar value printed on a bond, share, or other financial instrument, representing its value at issuance.

Bond Premium

The amount by which the market price of a bond exceeds its face value, typically occurring when the bond's interest rate is higher than current market rates.

Fair Value Through Profit

A financial accounting treatment where changes in fair value of assets or liabilities are recorded in the profit or loss for the period.