Assuming the Aggregate Supply Curve Is Upward-Sloping,which of the Following

question 111

Multiple Choice

Assuming the aggregate supply curve is upward-sloping,which of the following is most likely to occur if the Fed pursues restrictive monetary policy?

• A)The equilibrium price level and output will both increase.
• B)The equilibrium price level and output will both decrease.
• C)The equilibrium price level will decrease but output will stay the same.
• D)The equilibrium output will decrease but the price level will stay the same.

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