Consider the Exhibit Below for the Following Questions

question 68

Multiple Choice

Consider the exhibit below for the following questions.
Figure 33-4
-Refer to Figure 33-4.If the economy starts at A,a decrease in the money supply moves the economy

• A)to A in the long run.
• B)to C in the long run.
• C)back to A in the long run.
• D)to D in the long run.

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Definitions:

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumers' income.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to a normal good.

One-Of-A-Kind

An item or phenomenon that is unique and has no identical counterpart.

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change regardless of price fluctuations.