In the Aggregate Demand-Aggregate Supply Model, What Will Be the Effects

question 81

Multiple Choice

In the aggregate demand-aggregate supply model, what will be the effects of a decrease in the money supply in the short run?  

• A) an increase in the price level, and an increase in real GDP 
• B) a decrease in the price level, and a decrease in real GDP 
• C) an increase in real GDP, and a decrease in the price level 
• D) a decrease in real GDP, and an increase in the price level

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