When the money supply declines by 10%,in the long run,output ________ and the price level ________.
A)is unchanged; is unchanged
B)declines; falls
C)is unchanged; falls
D)declines; is unchanged

Question

Quizplus · Accepted Answer

In the long run, a decline in the money supply leads to a proportional fall in the price level, but output remains unchanged according to the classical dichotomy and neutrality of money.

When the Money Supply Declines by 10%,in the Long Run,output