In the Aggregate Demand-Aggregate Supply Model in the Short Run,a

question 53

Multiple Choice

In the aggregate demand-aggregate supply model in the short run,a decrease in the money supply is likely to cause a(n) :

• A)increase in both the price level and real GDP.
• B)decrease in both the price level and real GDP.
• C)increase in real GDP and a decrease in the price level.
• D)decrease in real GDP and an increase in the price level.
• E)increase in the price level only.

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Definitions:

Creatively

In a manner that involves the use of imagination or original ideas to create something.

Initiative

The ability to assess and initiate things independently, often seen as a leadership quality.

Language Comprehension

The ability to understand spoken, written, or signed language.

Temporal Lobes

Regions of the cerebral cortex located beneath the temples, involved in processing auditory information and encoding memory.