If the Economy Is at Potential Output and the Bank

question 311

Multiple Choice

If the economy is at potential output and the Bank of Canada decreases the money supply,in the short run the price level will likely_____ and real GDP will likely_____ .

• A) increase;increase
• B) increase;decrease
• C) decrease;increase
• D) decrease;decrease

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Definitions:

Capital Structure

Describes the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, used to finance its overall operations and growth.