Given a Vertical Aggregate Supply Curve,which of the Following Is

question 39

Multiple Choice

Given a vertical aggregate supply curve,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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