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Suppose That the Central Bank Unexpectedly Reduces the Growth Rate

Question 159

Multiple Choice

Suppose that the central bank unexpectedly reduces the growth rate of the money supply.In the short-run the effects of this are shown by


A) moving to the left along the short-run Phillips curve.
B) moving to the right along the short-run Phillips curve.
C) shifting the short run Phillips curve right.
D) shifting the short run Phillips curve left.

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