According to the Aggregate Demand and Aggregate Supply Model,in the Long

question 49

Multiple Choice

According to the aggregate demand and aggregate supply model,in the long run a decrease in the money supply leads to

• A)decreases in both the price level and real GDP.
• B)an increase in real GDP and an increase in the price level.
• C)a decrease in the price level but does not change real GDP.
• D)an increase in the price level but does not change real GDP.

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Definitions:

Consumers

Individuals or groups who purchase goods and services for personal use or consumption.

Society Interest

The collective welfare and interests pursued by a community or society, often reflecting common goals or concerns such as public safety, education, and economic prosperity.

Own Interest

Refers to the personal gain or benefit that individuals or organizations seek in various activities or decisions.

Production Process

The Production Process involves the methods and sequences of activities used to transform inputs into finished goods or services.