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If the economy is at potential output and the Fed decreases the money supply, in the SHORT run the price level will likely_____ and real GDP will likely_____ .
Ordinary Annuity
Consecutive settlements of equal value made at the end of each period over an established length of time.
Annuity Due
A financial product that pays out a series of payments at the beginning of each period, such as monthly or annually.
Present Value
The current value of a future sum of money or stream of cash flows given a specified rate of return, commonly used to appraise long-term projects.
Discount Rate
The interest rate used to determine the present value of future cash flows in discounted cash flow analysis. It reflects the opportunity cost of capital.
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