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Summarize the Effects of a Contractionary Monetary Policy Where the Changes

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Essay

Summarize the effects of a contractionary monetary policy where the changes in the money supply (Ms) impacts the rate of interest (r), investment spending (I), output and income (Y), and the demand for money (Md).

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Definitions:

Bureau of Labor Statistics

A U.S. government agency that collects, analyzes, and disseminates essential economic information to support public and private decision-making.

Employed Category

A classification of individuals who are currently working in a paid job, whether full-time or part-time.

Natural Rate

Often referred to as the natural rate of unemployment, it is the level of unemployment at which there is no cyclical or deficient-demand unemployment, commonly seen as the equilibrium state of the labor market.

Unemployment Rates

The quantity of individuals in the workforce who are unemployed and making efforts to find job opportunities.

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