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Describe the Effects,in Both the Short Run and the Long

question 29

Essay

Describe the effects,in both the short run and the long run,of a decline in the money supply.Explain what happens to real output and the price level.


Definitions:

Masking

A method used in research where the participants and/or researchers are unaware of which individuals are in the control group and which are in the experimental group, to prevent bias.

Confounding

A situation in which the effect of two variables on a third is not clearly distinguishable.

Validity

The accuracy with which a study reflects the true situation.

Bias

A systematic error or deviation from the truth in results or inferences that can affect the validity of research findings.

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