Given a vertical aggregate supply curve,which of the following is most likely to occur if the Fed pursues restrictive monetary policy?

Question

Quizplus · Accepted Answer

With a vertical aggregate supply curve, output is at its full capacity and cannot increase or decrease in response to monetary policy changes. Restrictive monetary policy typically reduces aggregate demand, leading to a lower equilibrium price level while output remains unchanged.

Given a Vertical Aggregate Supply Curve,which of the Following Is