In the Long Run, What Are the Effects of a Decrease

question 153

Multiple Choice

In the long run, what are the effects of a decrease in the rate of growth of the money supply?

• A) It will increase inflation and shift the short-run Phillips curve right.
• B) It will increase inflation and shift the short-run Phillips curve left.
• C) It will decrease inflation and shift the short-run Philips curve right.
• D) It will decrease inflation and shift the short-run Phillips curve left.

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Definitions:

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