When the Money Supply Declines by 10%,in the Long Run,output

question 12

Multiple Choice

When the money supply declines by 10%,in the long run,output ________ and the price level ________.

• A)is unchanged; is unchanged
• B)declines; falls
• C)is unchanged; falls
• D)declines; is unchanged

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Definitions:

Total Revenue

Total revenue is the total amount of money received by a company for goods sold or services provided during a certain period.

Foreign Producers

Companies or individuals that produce goods or services in a country other than where the products are consumed.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time.

Tariff

A tax imposed on imported goods and services to raise their price, thereby protecting domestic industries from foreign competition.