In the Long Run, the Effect of a Reduction in the Money

question 211

Multiple Choice

In the long run, the effect of a reduction in the money supply is to

• A) decrease the price level only.
• B) decrease real Gross Domestic Product (GDP) only.
• C) decrease both the price level and real Gross Domestic Product (GDP).
• D) decrease the price level and increase real Gross Domestic Product (GDP).

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Definitions:

Photoautotrophs

Organisms that carry out photosynthesis to produce glucose and other organic compounds from carbon dioxide and water using light energy.

Land Plants

Plants that have adapted to live primarily on land, including a wide range of flora from grasses to trees.

Algae

An informal group of unicellular, or simple multicellular, photosynthetic protists that are important producers in aquatic ecosystems.

Thylakoid Membranes

Membrane-bound compartments inside chloroplasts and cyanobacteria where photosynthesis takes place.